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Hardware Intel's Korean Offices Raided by the KFTC
Brandon Hill (Blog) - February 9, 2006 9:12 PM
Print E-mail del.icio.us 45 comment(s) - last by Viditor.. on Feb 12 at 12:47 PM

The early morning raid occured at Intel's offices in the Daehan Investements & Trust Building - Courtesy Heerim A&P
The Korean Fair Trade Commission conducts dawn raids on Intel offices in Korea

In another twist to AMD's ongoing antitrust case against Intel, the KFTC (Korean Fair Trade Commission) completed a dawn raid on Intel's Korean offices. This latest raid was conducted to investigate Intel's relationship with four South Korean PC vendors. AMD claims that Intel's predatory business dealings have victimized 38 companies around the world.

Intel was found guilty of monopolistic business practices by a Japanese court ruling in March of 2005. In July of 2005, Intel offices and the offices of major European PC vendors were raided by the European Commission to gather information in the ongoing antitrust case. The company then lost another court battle on December 15th, 2005 after the Tokoyo District Court ruled that documents implicating Intel in improper business practices had to be turned over to the Japanese Fair Trade Commission and AMD.

AMD's executive vice president, Thomas M. McCoy, wasted no time expressing his thoughts on this latest inquiry into Intel's business practices: "Similar dawn raids conducted by competition authorities in Japan revealed evidence of illegal business practices that violated that country's Antimonopoly Act. The JFTC ruled that Intel conditioned deals with Japanese PC OEMs based on excluding competition. Last year, the European Commission also conducted dawn raids across Europe to gather evidence of Intel monopoly abuse within the European Union. How many raids in how many countries need to happen before Intel accepts responsibility for its anticompetitive actions and ceases its unlawful business practices?"

For those of you have haven't read AMD's full briefing on its case against Intel, be sure to download it here. It's quite a whopper weighing in at at a 48 pages.

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AMD user on Intel's side
By tjr508 on 2/10/2006 2:49:45 AM , Rating: 2
I think that AMD is the dirty one here.

Those of us watching the market know that
a. AMD processors have gone up in price recently
b. The supply of AMD OEM processors available for retail has completly dried up.

This means one of two things:

AMD is price fixing, making them worse than Intel in many ways. They are also taking a crap on their consumer base by forcing us to pay extra for un-used HSFs and packaging.

or

AMD simply cannot keep up with demand. In this case it would be absolutely retarded for any major OEM to even consider using AMD processors in their machines. This is the major public reason Apple officials gave for choosing Intel. If Dell or Apple have 20,000 orders, they are expected to ship 20,000 machines that day and not wait who knows how long for more processors. Being AMD has two major FABs now and Intel has four or more, Intel can spend most of its time pushing out product while AMD must re-tool one fab while hoping the other one stays running at satisfactory levels. AMD is simply not an attractive choice for big OEMs, so as long as big OEMs are responsible for the bulk of PC sales, Intel will remain king of the fair market.





RE: AMD user on Intel's side
By Bonrock on 2/10/2006 4:39:51 AM , Rating: 2
You know, I wondered for a while why Apple chose Intel instead of AMD. Then, when it was revealed that Intel had devoted hundreds of engineers to the task of helping Apple convert the MacOS to x86, I knew why Apple chose them. Intel gave Apple free engineering labor to convert their OS; I highly doubt AMD has hundreds of engineers to spare on something like that.


RE: AMD user on Intel's side
By Griswold on 2/10/2006 5:53:49 AM , Rating: 2
Oh clueless one.


RE: AMD user on Intel's side
By Viditor on 2/10/2006 7:05:09 AM , Rating: 2
quote:
Those of us watching the market know that...


sigh...I think you were looking at the wrong market :)

1. HP has already stated that they under-ordered which was the reason for the shortage
2. AMD did indeed sell ALL of their inventory last quarter, as well as already being sold out for this quarter. But by next quarter they will have almost triple the production ability (Fab36 ships for revenue at the end of this quarter on 300mm, as does Chartered Semiconductor on 300mm)

In the US, every single 1st and 2nd tier OEM (with the exception of Dell) now carries AMD...and 2 (Sun and eMachines) have even dropped Intel.


RE: AMD user on Intel's side
By Questar on 2/10/2006 9:41:32 AM , Rating: 2
And the two (?) that dropped Intel are in the toilet financialy.


RE: AMD user on Intel's side
By Viditor on 2/10/2006 9:49:24 AM , Rating: 2
quote:
And the two (?) that dropped Intel are in the toilet financialy

And are now improving since they made that decision...


RE: AMD user on Intel's side
By Questar on 2/10/2006 11:01:12 AM , Rating: 2
Improving?!?

Sun (which I don't recall using Intel)
2nd quarter 2006 - net loss $223 million
2nd quarter 2005 - net profit $4 million

eMachines
Income last quarter 2005 - $22 million
Income last quarter 2004 - $94 million


So what exactly is your defination of improvment?


RE: AMD user on Intel's side
By amish on 2/10/2006 2:40:16 PM , Rating: 2
can you get us a link on the Sun loss? i just find it hard to believe since Q2 is usually april, may, and june; and currently it's february...


RE: AMD user on Intel's side
By Questar on 2/10/2006 3:38:41 PM , Rating: 2
You are confusing caledar quarters with fiscal quarters.

Here's their earnings report:

http://www.sun.com/smi/Press/sunflash/2006-01/sunf...


RE: AMD user on Intel's side
By Viditor on 2/11/2006 12:16:21 AM , Rating: 2
Unfortunately, Questar has got his numbers quite wrong...

Sun has increased their net revenues by 17.5% over the last year
Dec 05 net revenues = $3.337 B
Dec 04 net revenues = $2.841 B

Sun dropped the Intel Xeon based V60 and V65 in 2004 in favour of the Opteron

As to eMachines, they just dropped Intel this quarter...but analysts were favourable on the news. eMachines is part of Gateway (which has also just recently started to sell AMD).


RE: AMD user on Intel's side
By tjr508 on 2/11/2006 1:38:20 PM , Rating: 2
The revenue increased because they baught other companies. Who cares if they have a revenues in the billions if 223 million more dollars left the company than came in.


RE: AMD user on Intel's side
By Viditor on 2/12/2006 12:47:22 PM , Rating: 2
quote:
Who cares if they have a revenues in the billions if 223 million more dollars left the company than came in

I suppose if you were an investor for just one quarter, that would be important...
But the R&D bump makes up for twice that (going from $600M to over $1B last quarter). Sun has become a very healthy looking company with excellent prospects for growth going forward.
When you measure a company, short-term profit/loss is not a very good indicator of it's success...


RE: AMD user on Intel's side
By MrKaz on 2/10/2006 10:27:56 AM , Rating: 2
That’s a little strange.

I have been recently in a super datacenter infrastructure (recently build) (best in Europe) and the servers where all SUN....

My country government has replaced their servers with new SUN (servers) machines.....

I didn’t know they where in bad shape because they sell....


RE: AMD user on Intel's side
By kilkennycat on 2/10/2006 10:49:50 AM , Rating: 2
"I think that AMD is the dirty one here.

Those of us watching the market know that
a. AMD processors have gone up in price recently
b. The supply of AMD OEM processors available for retail has completly dried up. "

a. Wrong. Only the price of the 939-pin 1xx dual-core Opterons have been raised slightly to ensure that they did not compete with A64 processors for "enthusiast-built" desktop sockets. The original pricing seems to have been a marketing mistake. The prices of the A64 units, especially X2 have fallen by an average of about 8% in the past month.


RE: AMD user on Intel's side
By kilkennycat on 2/10/2006 10:52:44 AM , Rating: 2
... sorry posted incomplete by mistake... continuing...

b. The AMD "OEM-tray" processors have been withdrawn from the RETAIL market to combat counterfeiting/re-marking, especially in the Far East.


RE: AMD user on Intel's side
By modestninja on 2/12/2006 3:15:13 AM , Rating: 2
Another little comment I want to make on this one is that it takes more than one company to price fix. Companies are allowed (in most cases unless they have a regulated monopoly) to charge whatever they want for their products and services.

Price fixing is when two or more companies get together and decide to raise their prices in order that they all make more money. It's what gas stations have been getting away with for years. I believe in order to convict a company of this there has to be evidence that the companies communicated with each other about fixing the price (although if I remember correctly there was not too long ago a company fined for price fixing without finding a smoking gun.)


Not really a "raid"
By Questar on 2/9/2006 9:32:02 PM , Rating: 2
The term raid is from AMD's press release - they used it seven times in fact.

Both the Korean Government and Intel have stated that it was nothing more than a request for more information.

Inforworld has a great article on the AMD lawsuit in this weeks issue discussing the spin AMD is putting on the case. Specifically how AMD is trying to sway public opinion by convincing that AMD is doing it for them. Infoworld points out that AMD is doing only for themselves.




RE: Not really a "raid"
By JackPack on 2/9/2006 9:43:15 PM , Rating: 2
Considering AMD's corporate culture, I'm not surprised they would use words that try to connote criminal activity on Intel's part.

"Raid" is the kind of term you would use during the Prohibition Era.

"You're not gonna take me alive, G-Man!"


RE: Not really a "raid"
By oTAL (blog) on 2/9/2006 11:28:23 PM , Rating: 2
Corporate spin... I still think there's truth in it though. Little doubts about intel's monopolistic actions...


RE: Not really a "raid"
By Griswold on 2/10/2006 5:50:26 AM , Rating: 2
Oh yea inforworld... laff. You know what? Last summer, the authorities in europe called it raids - in public too. So, stop being a FUD machine for intel, please.


RE: Not really a "raid"
By Viditor on 2/10/2006 6:51:38 AM , Rating: 2
From the Korean Times
quote:
The Fair Trade Commission (FTC) Friday said it had raided Intel’s office in Seoul earlier this week after allegations were made about the company’s antitrust practices

"We have checked the authenticity of the claim on Intel Korea’s anticompetitive practices and found the claim is not baseless,’’ FTC spokesman Kim Joo-hyok said.
Kim insinuated that it is highly likely Intel Korea will be fined or face other punishment by saying the investigation will be a long battle.
``This is a big case. As a result, it will take a long time to reach a conclusion, possibly more than one year just like the case involving Microsoft,’’ Kim said.


RE: Not really a "raid"
By Viditor on 2/10/2006 7:07:55 AM , Rating: 2
Sorry, forgot the link...
http://times.hankooki.com/lpage/200602/kt200602101...

BTW...not a single quote from AMD in the article.


RE: Not really a "raid"
By TwistyKat on 2/10/2006 6:58:11 AM , Rating: 2
quote:
Specifically how AMD is trying to sway public opinion by convincing that AMD is doing it for them. Infoworld points out that AMD is doing only for themselves.


Heh.

They obviously are learning their spin lessons from Master Rove.


its gonna happen to amd
By NerV04 on 2/9/2006 9:32:05 PM , Rating: 2
i bet a lot of ppl are gonna bash intel again...but i cant help imagining that 10 years from now AMD will prob get this crap on their table and laugh how history repeats itself




RE: its gonna happen to amd
By FrozenCanadian on 2/9/2006 10:19:25 PM , Rating: 2
I'm not gonna bash Intel thats like beating a dead horse. But lets take a look at HP's Pavilion desktop range (1300) PCs
http://www.hp.ca/products/static/pavilion-desktops...

4 AMD to 2 Intel and all I see on TV for HP ads is Intel based HP's. I wonder why /sarcasm.


RE: its gonna happen to amd
By smitty3268 on 2/9/2006 10:38:21 PM , Rating: 2
Because if HP makes an ad about an Intel based system Intel will pay for part of it. If not, they won't get a dime.


RE: its gonna happen to amd
By FrozenCanadian on 2/9/2006 10:41:23 PM , Rating: 2
You mean all of it. AMD needs to drop to Intels level in the marketing but I find they have more class.


By FrozenCanadian on 2/9/2006 10:46:52 PM , Rating: 2
Just to add to my last comment. Any Canadian here that watches TV can say all we see is Ads for DELL, MDG (ripoff artists that are also Intel only) and Intel HP's. I wonder who pays the ad bills.


RE: its gonna happen to amd
By MrKaz on 2/10/2006 6:19:41 AM , Rating: 2
Well I think that’s really good for AMD.

-What you are saying is that there is 4 AMD and 2 Intel HP systems selling.
-HP makes ads for the 2 Intel systems.
-People see the ads a go out to buy the HP PC.
-Since there are 4 AMD and 2 Intel, the chance that the people would buy the AMD system instead of the Intel is two to one.
-So Intel is in fact paying Ads for HP sell more AMD systems.

;)


By FrozenCanadian on 2/10/2006 9:07:10 PM , Rating: 2
Saying that 4:2 for AMD = Intel paying for advertising AMD is just wrong. People still walk into a store saying "I want the Intel one". I still have to tell everyone I know that Intels are Hummers where as AMD are triped out Honda Civics. More performace for less $ a year on your electric bill(or gas bill in my anology). Although in the end its not my choice what people get so if you find Intel cheaper go nuts your electric company thanks you.


...
By shabby on 2/9/2006 9:58:46 PM , Rating: 3
I thought that read "raided by kfc" heh.




RE: ...
By NFS4 on 2/9/2006 10:25:42 PM , Rating: 2
11 herbs and spices :D


RE: ...
By RandomFool on 2/10/2006 10:08:04 AM , Rating: 2
I hope they got some mash potatoes while they were there, those are delicious.


RE: ...
By PrinceGaz on 2/10/2006 6:44:28 PM , Rating: 2
I thought that's what it said at first too.


RE: ...
By Cygni on 2/10/2006 7:00:29 PM , Rating: 2
Intel's success for the shrink to 65nm is clearly due to advanced fried chicken research in its Korean facility.

Really, Intel being raided by KFC would have made this a far more interesting topic. ;)


Defending Intel
By AMDZen on 2/10/2006 11:14:49 AM , Rating: 2
I can't believe some of you here who are actually defending Intel. I knew of their business practices long before AMD filed the suit. What suprises me is how long it took AMD to file that suit.

And to the person whose defense of Intel is way beyond naive, who claims that AMD is the one to blame in all this. Who claims that AMD's processors are so highly priced, apparently you have failed to see that they are still well below the cost of Intel processors at each perspective performance scale. And still perform a lot better too. I'm not an AMD fan boy, I simply buy whoever makes the fastest processor. It just so happens that AMD has made the best, fastest, and better overclocking processors for as long as I can remember. And have ALWAYS been less expensive then their Intel counterparts.




RE: Defending Intel
By Questar on 2/10/2006 11:19:39 AM , Rating: 2
Bwahaha.

Don't remember for a long time do you? K5 was the best? K6 was the best?

K9 rocks, but come on.


RE: Defending Intel
By MarkHark on 2/10/2006 1:08:03 PM , Rating: 2
K5 was far from the best, at least as long as math coprocessing was part of the equation; nevertheless it was still way cheaper than similarly clocked Pentiums, and overall faster than any comparably priced Intel processor at the time.

As to K6 and K6-2, while they were not on par with Pentium III's performance, they were far superior (and yet cheaper) to (than) the cacheless Celerons of the time.


RE: Defending Intel
By MarkHark on 2/10/2006 1:18:24 PM , Rating: 2
What I mean is,
while it is true that Intel used to have the upper hand until it decided to drop P3 in favor of the Netburst architecture, AMD has for a long time had the best price-performance on the mid to lower end, that is, they have been the best for those of us who were not willing to pay and arm and a leg for just a little extra performance.


In Korea now..
By Doh! on 2/9/2006 11:49:42 PM , Rating: 2
I've been coming here for the past 10 yrs. on business assignments, spending from 6 to 10 months each yr. It's amazing how it's almost impossible to find an AMD-based PCs on retail channel. Yes, you can buy them from small local vendors but none of the major mfg. will sell AMD PCs (even US companies such as HP-Compaq). Intel rules the entire country with AMD only favored by a small group of self-builders. Once Dell elects to sell AMD, it may change though.




RE: In Korea now..
By Saist on 2/10/2006 12:00:53 AM , Rating: 2
Right off hand, if you think Dell is actually going to ship AMD, I would like some of what you are smoking, or drinking.

AMD can't offer the volume discounts on processors that Intel can, and it is widely reguarded that any motion by Dell to consider AMD is simply telling Intel it's time to renegotiate the contract.

On the other hand, Dell appears to be steamed up a bit over the Intel/Apple deal, and it is concievable that Dell may actually launch a few AMD platforms in order to simply spite Intel. However, I can't really see Dell ever giving AMD and Intel equal rate within sales.


RE: In Korea now..
By Doh! on 2/10/2006 12:26:51 AM , Rating: 2
You must be smoking or drinking something since you obviously misinterpreted my statement. There was no implication that Dell will sell AMD. Once=If It was nothing more than a wishful thought. Obviously, you've chosen to be smartass about it. Well, grow up.


RE: In Korea now..
By DigitalIrony on 2/10/06, Rating: -1
Remove foot from mouth, then talk
By SGTPan on 2/10/2006 10:53:55 AM , Rating: 2
"Those of us watching the market know that
a. AMD processors have gone up in price recently
b. The supply of AMD OEM processors available for retail has completly dried up."

Watching the market eh? By that do you mean you make a monthly visit to CompUSA? A quick stroll around the web will reveal an abundance of almost all of AMD's lineup, including the harder to find dual-core Opterons and Turion 64 parts (if you know where to look), and most of them at the lowest prices they've seen yet in the market! I'm a small time OEM SB, but even I haven't had any problems getting inventory through partner channels (who generally get slim pickens compared to the tier 1 OEMS)... and AMD's quantity pricing is the best its ever been to boot. Wipe your shoes would you? Your nonsensical BS is stinking the joint up.




Shills all over the place
By Z3RoC00L on 2/10/06, Rating: 0
"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

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