AMD: Intel nailed to the cross of monopoly

United States Eastern time 21 July 2005, at 4 p.m., the world's largest two CPU vendor lawsuit with the latest progress. AMD headquarters press spokesman announced short stated that the company has been in August and Intel to prepare the real contest and win the confidence of this lawsuit.

In AMD's latest position 6 hours ago at the trial of this action in Federal District Court of Delaware, from Intel and AMD's legal representatives have indicated that the parties have agreed to a lawyer for August 1 week (specific day is yet to be negotiated), AMD's antitrust dispute held its first meeting, and will also exchange may be used in court, witnesses ' names and addresses, and as a material evidence in the file.

Prior to this, the Federal District Court of Delaware has Intel requirements will defend date extended to 6 September, the industry generally believe that the two sides of a true confrontation will expand on that date. But AMD's simple statement that means, the world's largest two CPU vendors will lead to a substantive stage of confrontation.

After 1 month of jiaozhezhuangtai, the industry has show on AMD v. Intel was tired of the State, and considers that this time the AMD has a potential to ride the Tiger, the delicate situation.

It all comes from AMD to Intel for a long time furious action impulse. In the history of the sky, the desire to put Intel AMD nailed in the monopoly of the "cross".

Beat the guest from brother

On 28 June, the world's second largest CPU vendor AMD announced that, pursuant to the relevant provisions of United States law, to the world's largest CPU vendor Intel antitrust proceedings had been instituted. Submitted to the Court for up to 48 pages of pleadings, AMD details "Intel illegal maintains its x 86 microprocessor market monopoly status, and request the customer and the AMD transactions" and "evil".

The industry believes that the latest litigation is stands for "unexpected," because it's 30 years in the sense of the "ears" are not from the "Silicon Valley's longest historic grievances".

All strange to blame the two companies for mutual understanding is so profound, because they are derived from the rich legendary children and the company — used to be the world's largest and most innovative semiconductor companies.

Children and the company is a Silicon Valley gave birth to thousands of technicians and managerial staff, including Intel co-founder Bob · Noyes, Gordon · Moore and AMD founder Jerry · Saunders. At that time, both for the company's technology backbone, the Sanders as Sales Director. Best time to

In fact, Ruiz is not suing Intel AMD again, he is satisfied with the strength of the AMD brings unprecedented win chance after. Wall Street has a consulting company in the analysis of the latest trends of both parties that the chance of losing that Intel is as high as 75%.

AMD Chinese companies is explained, "AMD had previously been quelled anthropogenic pushed Intel too unreasonable, AMD's rights were unlawfully deprived of Intel. Now is the best time, we have strong enough to challenge Intel, we in the technology, performance and price, and so on Intel is constantly under pressure ". The company's spokesman said, "AMD now no longer resist, then perhaps it is more difficult."

However, even if it is sympathetic to AMD's analysts also believe that the "AMD has strong enough to challenge Intel" is only a short-term phenomenon. Their reasons are, in a clear and normal trajectory, to Intel's research and development teams, financial strength, inputs and "paranoid"-enterprise culture, other competitors, it is difficult to have a chance to catch up. Intel is like driving a limousine, smooth but to high speed, while AMD you like tricycles, the hype continues to be difficult to achieve the speed of the Intel. AMD was able to catch up at this time, precisely because of the industry changes, Intel went to a strategic turning point. This crossroads, Intel will need to wait and see, balance and re-layout. It is in this one-stop for a meal, AMD with up breathless.

It is clear that AMD tube not so many. Standing in the new industrial location, press spokesman for the Chinese company AMD, Intel's monopoly not CPU technology innovation, monopoly money to earn that Intel loses momentum of technological innovation. AMD is that whether it is on a 64-bit technology, or dual-core processing, Intel has lagged behind its own that Intel at the time did not dare discuss 64-bit technology, "it also does not have the appropriate strength. "The spokesman said.

At the same time, since 2004, Intel's negative news, always in the shadow of the Intel difficult survival of AMD finally got the "salted fish turn health", in 64-bit chips, multi-core processors, beyond the Intel and industry machine manufacturers vigorously pursued; IBM, Sony and Toshiba 3 companies are also jointly announced jointly invest 10 billion, more than 4 years of research and development of the "CELL" chip for major breakthrough imminent transfer to small batch production phase. As the "blue giant" secret weapon, "CELL" is aimed at game machine, high-definition digital TV and home server field is precisely the most coveted market Intel. By an external enemy, Intel's own internal trouble, a series of products is not an extension is removed, while Intel Alliance have begun to crack.

CPU AMD to Intel and industry who have a different meaning. On the former, the PC industry is maturing and even the decline of the sunset industry, because the CPU is no longer accepting huge still has Intel want high-speed expansion ambitions, when 3 c integration prospects become increasingly clear that it was prepared to put the chip area supremacy from microprocessors to telecommunications, home appliances, and other related areas, such a strategy of transition on the Internet

-Caution, about distraction button. But on AMD, and Intel counterpart, from Intel profits in a piece of the action, is a great take-off.

AMD uses Intel's wandering up the technology of short, but you want to translate into profits, you also need to break the Intel build long-term industrial ecology, again "antitrust" litigation is undoubtedly a "killer app".

Prisoner's dilemma and ambivalence

It is important to note that different previous lawsuit, AMD in the latest round of antitrust litigation to PC manufacturers are volume came in, it notes the major PC manufacturers to save Intel's "monopoly" of the evidence, but tough requirements PC manufacturers "clear position station line. "The concern is that the Delaware Federal District Court to support AMD's requirements.

In suing Intel AMD indictment of monopoly, Compaq's former Chief Executive Officer Michael · Kapellen, Acer is former Chairman Shih to prove the identity of the person. Capellen tell AMD's senior management said, "because it was his gun-in my head, I had to stop buying AMD processors". At AMD, Intel always forced major customers accept exclusive agreements, while detained for paying a credit and marketing subsidies, to punish the excess purchase AMD processors of customers. Stan Shih also confirmed that the former CEO and Chairman of the Board of Intel Craig · Craig, in September 2003, Taiwan region arrived, "because he heard that macro project to openly support AMD's new chip, so he told me, if you participate in AMD's chip release at your own risk. This directly led to the withdrawal of the AMD Chip Conference macro. ”

The Japan Fair Trade Commission (JFTC) survey evidence that, in 2002, Intel to Sony, Toshiba, and Hitachi paid tens of millions of dollars of money, discounts and promotional support, Intel under the name of this change to a worldwide exclusive distribution rights. JFTC has also blamed Intel threatened to retaliate against conducting business with AMD's customers to retailers enforce quotas, limiting the retailers selling products based on the AMD platform, forced PC manufacturers AMD launch boycott.

Even so, PC manufacturers in the face of AMD Intel for prosecution witness, more is lost in the "prisoner's dilemma": if everyone together with AMD at monopoly of breaking Intel, nature is on choice, but if AMD does Intel still pulling? they cannot imagine the resulting consequences: benefit from Intel will significantly reduce the unfounded weakened and other PC manufacturers compete competition. In the face of this uncertain prospects, PC manufacturers, the best strategy is to wait to see the wind changes to determine their own attitudes.

Of course, different PC manufacturers because of the position is different, the mentality will be slightly different. Use the leading 3 large PC manufacturers, Dell as the industrial structure of the biggest beneficiaries do not want to break the existing supply and demand situation; Hewlett-Packard is more subtle, the world's second largest PC provider itself has a good high-tech brand image, but under the shade of light, if the homeopathic lend strength to cover Intel AMD's brand of light, and the competitive advantage of Dell can be relatively clear and prominent. But on the other hand, it is Hewlett Packard obtained from PC meager profit will not allow its half a point, or they may be stuck in a loss situation, more detrimental to competition and Dell. On the other hand are consolidating IBM PC Division Association, itself still in trouble, since many naturally do not want this uncertain prospects for unexpected trouble. Therefore, although the major PC manufacturers have on Intel grievances at heart, but rather easily as AMD's "endorsement".

It was during the summer of 2004, up computer in Shenzhen listing notice discloses facts of Intel advertising credit. Seven-up computer alleged, in 2003, up 25% of the profit computer comes from Intel's advertising credit.

Seven-up computer "for the words" firm AMD found Intel promoting awareness of monopolistic trading but at the same time reflects the helplessness of AMD. And Intel's spreeto AMD Gravis compared to depart from the Intel PC manufacturers suffered "pay".

Not afraid of bare feet shoes

AMD has always believed that Intel's CPU industry spoilers, from PC manufacturers who monopolize the industry profits.

AMD spokesman told the China company IT era weekly: "Motorola long-term profit margin of 8%, IBM's profits is-1%, HP's profit is 1%, Dell's profit is 9%, our profit margin of less than 5%, while Intel's profit is 41%. Global recognized guidelines are, if you are a multinational company profits for more than 10%, then it is already a huge profits. "Meanwhile, IDG offers a different set of data display, Intel occupies the central processor market 85% market share, especially in the high price of the notebook market, almost more than 93% of the share.

However, Intel to 80% more market share, more than 60% of the operating profit margin to exempt from anti-trust blow past, because there are two aspects: one is the development potential of the technology industry, Intel's competitive position only needs to rely on competitive advantages without the need to rely on the monopolistic advantages could be obtained, it can be said for a long time Intel is a monopoly, but seldom use obvious monopoly means that this is AMD in previous on Intel's monopoly action why not win; on the other hand, with AMD and other competitors, to the East, making Intel industry competition more like "Dupont" instead of "a single shareholder", despite the position between them is very unequal, but when the other competitors have disappeared, but allow access to a special AMD.

Intel has a monopoly in the clear, on the edge of AMD's behavior begins to become part of the delicate, subtle: take strong action to make A

MD completely disappear, you will encounter antitrust fight; let AMD against your own boat, you will lose that monopoly high profits. So Intel for AMD's behavior has been caught in the monopoly and competition act of grey areas, this is the AMD believes Intel monopoly evidence fully, but Intel is to evade the competition phase.

This delicate also exist in the downstream PC manufacturers deal with AMD's attitude, Outlook still uncertain situations, neither completely and AMD point to the same front, and you don't want to be thoroughly beaten AMD completely dominated by Intel — — at least the existence of AMD or Intel PC manufacturers to leverage the power of a bargain.

Intel, AMD challenge not only for music PC manufacturers at the radiant is here, in fact AMD risk is very small. But no matter what level of success achieved, AMD gains are considerable.

AMD's antitrust action appears to be reckless, but almost no risk, you can do better at breaking Intel King image of the future development of the situation itself will suddenly open; if not successful, you can also let Intel Qiaoshanzhenhu Dent, relieve the pressure of competition. The most thorough victory, nature is put against the power of the Intel monopoly, complete subversion together Intel's monopoly, AMD has been in Japan preliminary won a victory on Intel lawsuit, and the delay of five years of EU on Intel's monopoly investigation also began a substantive action, AMD in this unit force together with a force that also use Intel is turning, PC manufacturers grievances has existed for a long time, it is a "borrows playing ability" wonderful.

Secondly, only to take advantage of the technology advantages into end-user intellectual brand. Intel forces of nature, not only in technical advantages, but also through the "Intel inside" brand strategy to the vast number of end customers mental positions occupied, succeeded in forming a kind of "CPU is Intel" brand, while AMD you can only play the role of alternative, low price. But the high-tech industries of this brand strength is required and complementary product advantages, AMD in made product advantages, it needs an event of this product superiority tell people: AMD and Intel is not lagging behind.

Long monopoly and antitrust investigation, new century high-tech industry first monopoly case news value, AMD provides a platform, AMD has demonstrated their own space.

Finally, through monopoly action beating Intel, the Intel not to bully others to the extreme, and finally the out-of-court or court decisions, regardless of whether the judgment concluded that Intel monopoly, AMD can thus give Intel planning to avoid starting a son, and the Intel niggly constantly bring yourself a better competitive environment. Recently, Intel said the "allow" their OEM manufacturers buy AMD microprocessors, it reflects the AMD to Intel's action has been brought to his own advantage.

AMD needs to findings

Wall Street analysts expected, AMD and Intel refarming, Intel to lose the possibility of a lawsuit in more than 75%. To this end, Intel have to incur damages of 32 billion, with annual sales of $ 44 will be dropped.

But already won successive refarming, has extensive experience in dealing with antitrust lawsuit of Intel this readily concede?, in fact, over the years, Intel to AMD's disdain, and this time they show it's attitude is still not pique not fire. Allegations on AMD, Intel's new CEO Otto, denied.

Autrey, said: "we have to comply strictly with the relevant laws. We hope that through fair competition for the consumer to provide maximum value, this principle does not change. Over the past few years, we have repeatedly get involved in anti-trust disputes, and faced with a similar allegations now, but every time we all get a satisfactory result. We think the unfounded allegations of AMD, we believe that this legal dispute can be resolved, just like we had in the face of other disputes ".

In the face of AMD accuses Intel monopoly profits, Intel (China) company PR Manager Liujie feel ridiculous, she believes Intel not only sales, but also to the ecological environment of the entire industry. Liujie said: "the Intel always in accordance with the highest business logic and business rules, the entire industry collaboration and production are in accordance with the market, to ensure a level playing field. ”

Liujie also pointed out that, as a technology leader and market leader, innovation is Intel as the life of the enterprise. She said: "the Intel's history is the history of innovation. This year is the Intel set up 37 years, is also the 40th anniversary of the birth of Moore's law. Intel will continue adhering to the innovation in the chip, in lower and lower production costs, as well as highly integrated chips, putting in a lot of research and development funding. At the same time, the future of technology innovation must be to market demand. Intel has been committed to the market of innovation, product innovation, enhance and improve the innovation capacity of enterprises. "It is understood that the Intel annual research and development investment in excess of $ 4 billion.

Some Wall Street analysts, Intel more value and is not a case of winning or losing, but when AMD--, PC manufacturers are also willing to accept the original rules of the game. Just like the Intel in Japan can be accepted in order to maintain market monopoly action decision.

Perhaps there is such a "turning point" in AMD's call, and constantly more PC manufacturers to come out and join the "witness", the ultimate evolution into a new industry, and the long-term operation of "balance" to play monopoly game Intel also has the ability to adapt?

For AMD, more important is to strive for a level playing field, AMD spokesman told of Chinese companies in the IT era weekly: "we have nothing against Intel

Desire but need a level playing field for everyone on an equal footing, allow customers to select a partner! "but AMD ready? even if Intel has become the target of public criticism, AMD for PC manufacturers and consumers to provide cheap and stable product? if not, then, regardless of Intel play playing various instruments, PC manufacturers much complaining, why Intel customers stand to contraries, Intel sit on AMD's witness?

With antitrust lawsuit, monopoly that thing, after all, just a tactical means, in the face of such a big Mac to Intel, AMD indomitable spirit worthy of admiration, but how to win the road ahead, AMD is still very long and tortuous.

In 1968, Bob · Noyes and Gordon · Moore has created the Intel Corporation. 1 year later, Saunders created AMD.

War from AMD was first established. But like Intel compare Saunders always fail, or even in AMD on the first day of the establishment. "Noyes says Intel only took five minutes to raise $ 5 million, while I spend 500 million minutes just raised $. ”。 Sanders said ruefully. However, can-do is Saunders most prominent personality, he never gave up to challenge Intel's belief. In his view, go beyond the competitors are always their own tasks.

Two companies of the 1st passionate appeared in the early 1980s. At that time, the founder of the IBM PC using the Intel x 86 chips, in order to avoid excessive reliance on Intel, IBM asked Intel to help find another supplier. Intel has not yet found a noticeable trend of AMD.

In 1982, the two companies have signed a technology exchange protocol, Intel agrees that AMD has the right to use your "286" chip technology. Thus, AMD into IBM's 2 vendors. But in 1984, Intel provides behind AMD separate "386" chip, it would be considered a betrayal, AMD and Intel in 1987 to legal proceedings. This is the two companies for the first time the Tribunal encounters an event is IT historians call "386 disputes."

In the "386 dispute" is not the end of 1991, AMD to Intel antitrust litigation instituted that Intel through illegal acts to protect and maintain its monopoly position. This is the first time finds other AMD for monopoly. Although the two sides in 1995 signed a settlement agreement, but AMD has been retained to this day. views To this end, the AMD spokesman for the Chinese company confidently tell the IT era weekly: "Intel's monopoly in the industry for many years an indisputable fact that no matter how the defence would not help to change the nature of the facts."

Two cases of dispute and not allow AMD to Intel's grievances continues today, in the next day, AMD to Intel issued 3 times a strong challenge, which lets people impresses by a complaint to the European Union is AMD to Intel's acts of unfair competition. This is the first time in the flames of AMD to outside the United States (the EU is still under investigation).

"My head is clear, IT industry requires us to do so. The Intel for monopoly things onto the sun down and discuss the world's people will be happy. "AMD CEO Hector Ruiz · excitedly said.