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AMD benefitting from Intel's $1B mistake

Intel must be the gift that keeps on giving to AMD. In late 2009, Intel was forced to pay AMD $1.25B for its years of monopolistic behavior in the processor market. Now, AMD is benefiting directly from Intel's Series 6 (Cougar Point) chipset woes

In late January, Intel explained that it had uncovered a SATA problem with Cougar Point that could cause performance degradation over time. As a result, Intel stopped shipment of the affected chipsets, will take a charge of roughly $1B, and won't start shipping updated chipsets to its partners until later this month (volume shipments to customers will come later).

Not surprisingly, AMD is profiting greatly from Intel's gaffe according to Fox Business News. "We have some customers and retailers who have come to us specifically as a result of Intel's chip problem," stated AMD exec Leslie Sobon. "Some retailers have had to take things off their shelves, so they call us to ask what they could get from our OEMs that's similar. And OEMs are asking us for product, as well." 

Fox Business News goes on to report that computer manufacturers that sell both Intel and AMD systems are coming to the latter to supply more processors/chipsets to make up for the shortfall due to the Cougar Point woes. 

AMD earlier this year unveiled its Fusion processors that feature onboard DirectX 11 graphics. AMD says that netbooks using the chipset will have over 10 hours of battery life.

AMD has also been in the news recently thanks to the ouster of Dirk Meyer as CEO. Meyer was removed from his position due to a lack of vision when it comes to mobile computing devices like smartphones and tablets.



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RE: Serves them right...
By mcnabney on 2/9/2011 9:30:48 AM , Rating: 5
The biggest help that AMD is getting, unmentioned in the article, is that the chipset bug has pushed Sandy Bridge back from an effective January release to a late March release - much closer to the Bulldozer launch. This essentially does two things. It makes the new CPU launches nearly concurrent - which is great for AMD who was running behind. It also puts the thought of Intel quality issues into the minds of customers, making the AMD offerings more appealing even though there probably isn't a higher risk.


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