Intel (INTC) has been trying to get rid of its smaller competitor, AMD (AMD), for years. It may have even gone too far according to antitrust regulators in Europe.
But, now Intel has a better sword in its hand and AMD’s survival could be at stake. At $2.48, AMD trades near its 52-week low and is saddled with a large debt burden.
According to The Wall Street Journal, “Intel Corp. said Advanced Micro Devices Inc.’s deal to spin off its manufacturing operations breaches a patent-licensing pact between the companies, and threatened to cut off AMD’s rights to use the patents in 60 days.” The company AMD created has been funded by investors from the Middle East. They may be burned before the ink on the checks that they gave AMD is dry.
Intel obviously does not think that having any competition is good, even if its rival only has 20% of the market and probably does not have adequate capital to fund aggressive R&D.
The antitrust cases against Intel are still pending, but, as a practical matter, the chip company may face fines while burying its only competition.
Douglas A. McIntyre