AMD to License Server Chip Technology for Use in China Market

News & Analysis AMD Licenses X86 to China JV

AMD licenses server processor technology to Chinese companies

Advanced Micro Devices (AMD) is making a play for Intel's (INTC) Chinese server market - and maybe "Super 7" clients Alibaba (BABA), Baidu (BIDU) and Tencent (TCEHY) - as the No. 1 chipmaker prepares for 12,000 layoffs, MKM analyst Ian Ing suggested Friday. First, for AMD, this could be a step to get the company and its products some traction and growth after falling well behind Intel's Xeon platforms in the server space.

The deal gives AMD a needed infusion of cash and a partner in the world's second largest and fastest growing server market. (THATIC), will use the licensed technology to develop custom server chips that'll be sold exclusively in China.

The deal will involve the licensing of high-end technology to the company, called Tiajin Haiguang Advanced Technology Investment Company (THATIC), which is backed by a consortium of public and private Chinese companies.

AMD has clarified that the deal specifications do not extend to its GPU and ARM IP. The group is listed as one of many investment firms in which CAS has a stake. Our thesis has been that AMD has a unique set of IP (x86, ARM, Graphics, Server) that ultimately will get monetized - we wouldn't be surprised to hear more announcements in the future.

AMD, with its headquarters in Sunnyvale, Calif., announced the China deal Thursday with its first-quarter financial results.

AMD is placing a lot of faith in its upcoming Zen x86 CPU - if it fails, it could take the company down with it. But Zen could be equalizer AMD needs to compete with Intel in CPUs, and it could perhaps attract some enthusiasts over from the Intel camp.

The technology will come from AMD, and THATIC will provide the funding to establish facilities, especially those necessary for manufacturing.

With the decline in traditional desktop sales, chip makers like AMD and Intel are increasingly looking to enterprise-oriented servers for growth. Increasing the market share of AMD technology, in almost any capacity, is a move the company needs to have any chance to return to profitability. The collaboration will also focus on design server chips.


Source → AMD to License Server Chip Technology for Use in China Market

Comments

Post a Comment

Popular Posts

Unwanted Windows 10 upgrade costs Microsoft $10,000 through lawsuit

Image
Unwanted Windows 10 upgrade costs Microsoft $10,000 through lawsuit . Microsoft has been forced to compensate a user for the automatic and unwanted installation of Windows 10 on their computer. Teri Goldstein, the operator of a Californian travel agency, was awarded $10,000 through a lawsuit that alleged the forced installation caused her PC to become slow and unusable. Goldstein was seeking damages for lost wages and the cost of a new PC after Microsoft support failed to adequately resolve the issue. Microsoft initially appealed the judgment, but withdrew the appeal last month to "avoid the expense of further litigation". While Windows 10 has been positively received since its launch last year, many users have been complaining about Microsoft's aggressive update methods on previous operating systems, particularly Windows 7. Microsoft has been sending a never ending wave of update nags to Windows 7 users, and in some cases Windows 10 has been installed automatically....
Read more