Advanced micro devices inc (AdvancedMicroDevicesInc., AMD, also known as: AMD semiconductors) have reached an agreement to allow the use of a new joint ventures in China a patent technology in local production chips. This technique has long been seen as AMD and rival Intel (IntelCo., INTC) core technology.
A move that could trigger a Intel's strong opposition, highlights the AMD in the microprocessor market after struggling for a long time, urgently looking for new sources of revenue. China in order to reduce dependence on foreign technology of known hard, sometimes it investments and acquisitions by the United States government scrutiny.
According to the agreement, AMD said it will have an x86 chip technology to it with tianjin sea ray advanced technology investment co., LTD. (TianjinHaiguangAdvancedTechnologyInvestmentCo.) the new set up a joint venture, the joint venture will use the technology development in China only sales of server system chip. In exchange, AMD said it expected to get $293 million in licensing fees, plus sales any chip when the joint venture production need to pay royalties.
An analyst at consultancy TiriasResearch JimMcGregor when it comes to AMD the joint venture company, said that matter, China is an important market of the next generation of servers.
In chief executive Su Zi feng (LisaSu), under the leadership of AMD has signal, before looking for new ways to show that the proposed plan, gain income from its intellectual property. Su Zi feng said in a prepared statement, AMD's new license agreement is make full use of its powerful combination of intellectual property to speed up the excellent example of technology is more widely used.