Sunday, May 24, 2015
If acquired by AMD and Intel X86 authorization is automatically terminated
Do not look now AMD, Intel X86 market is dead in the opponent, but in the early advent of X86 architecture, Intel but the initiative to AMD X86 authorized to share because it was IBM X86 processor orders, others are entitled to X86 semiconductor company to license basic on do not exist. So now the question is, poor financial situation of AMD to become bigger, to find someone to invest is not run, it is often Samsung, Qualcomm and even AMD's acquisition of China's Godson rumors broke, then the question is, if AMD with other companies, merge or be acquired, then the licensing agreement with Intel's X86 still exist?
The question naturally there are many people in the industry concerned, regardless of what AMD are subject to change, this is a major event, but also may affect many investors make money or not. For this problem, a few days ago, AMD CFO Devinder Kumar Global Technology Conference in Jeffery did statement:
"(X86 license agreement with Intel's) is a cross-protocol, they are also used in the field X86 our innovative technologies (should refer to AMD's X86 64-bit technology), from this point on, they are partners. There are a lot of things is our first invention or the first application, it is not twelve technology is so simple, so that many people mistakenly believe the market using AMD rival technology, in fact, this is a cross-licensing agreement. "
CFO's statement was interpreted as if AMD is acquired or consolidated, or even the introduction of new investors, with Intel's X86 license is not an obstacle, which is basically equal to the potential investors, clearing the way.
These statements, however CFO AMD soon be clarified, director of public relations today clarified AMD and Intel's X86 license agreement, which is very important point is that - once AMD or Intel both companies changed ownership, whether as a merger, acquisition or accept the investment, this license agreement will automatically terminate.
In other words, AMD really keep other companies, merge or be acquired, this restriction in fact, still exist. Of course, this limit is the same time for both sides, not only is AMD, Intel acquired if being the case, the agreement will automatically terminate.
In addition, X86 license agreement originally signed between AMD and Intel have been for many years, 10 years ago, when Intel antitrust end both sides who held the cross-licensing agreement, so the CFO saying is right to some extent, especially in the 64-bit AMD X86 Let Intel low a head on the processor.