Extraordinary Genius

穷四

Chapter 1403 - Ways of competition

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Chapter 1403 – Ways of compet.i.tion

Intel and AMD have an interesting relationship. Why are there rumors in Feng Yu’s previous life that Intel is the major shareholder of AMD?

Some former Intel Directors are on AMD’s Board of Directors, and some former AMD’s Directors are on Intel’s Board of Directors. Both companies even have an agreement to exchange technology patents.

Although both are making processors, their research directions are different.

If both parties can exchange technology patents, they can use new technologies on their processors. This will raise their standards compared to other semiconductor companies, forming a duopoly in the processor market.

Intel’s revenue was more than ten times AMD last year. AMD’s revenue was less than 4 billion USD, while Intel had almost 40 billion USD.

Although the PC industry is developing quickly and servers and workstations are expanding quickly, Intel’s market share has always been higher than AMD.

But Intel doesn’t dare to kill AMD because they will be sued for Ant.i.trust and forced to break up.

That’s why Intel became a compet.i.tor and partner of AMD.

Both companies will compete for the market share. Intel has never used its influence to prevent AMD from getting orders.

Both companies cooperated on sharing their technologies to keep them in the lead. Of course, there are limitations to this agreement. Both parties will not authorize each other their core technologies.

In Feng Yu’s previous life, Intel and AMD are always suing each other for patent infringements.

AMD won most of the lawsuits and even got compensation of almost 1.5 billion USD once. That’s more than their annual profits.

Both parties will sue each other when the other party launched their new processor.

AMD had sued Intel because of cut-throat compet.i.tion previously. This time, Intel is suing AMD for using the photograph taken during the compet.i.tion for unfair compet.i.tion.

But AMD doesn’t care. They had fought at least 80 to 100 lawsuits over the years, and their priority is to get the market share first.

Anyway, the lawsuits take a long time, especially between large companies. Microsoft’s lawsuit with the EU lasted over six to seven years.

When the odds of winning are low, their lawyers will ask for a private settlement. After that, their talks failed, and the lawsuits start again.

Of course, there are private settlements at times, but that will depend on the offers by the companies.

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Many companies within the same industry are compet.i.tors and partners like AMD and Intel.

Healthy compet.i.tion among companies is based on products, prices, services, etc.

But some companies had adopted a “wolf” culture. It is either you or me. It is mainly the smaller companies that will adopt this culture. Which big corporation will dare to claim they can kill off their compet.i.tors?

It’s just you can find Pepsi in the same place where you can find Coca-Cola. You can always find KFC in the same place as MacDonald’s. They might be compet.i.tors, but they are also partnering in keeping other compet.i.tors out.

Feng Yu had asked AMD’s CEO, and he told him not to worry about it. They are used to being sued or suing Intel, and they will reach a private settlement soon.

During this period, both companies will race to see who can develop better technologies.

Regardless of the outcome, AMD’s market share will be more than 20% next year, and Intel’s market share will drop.

If AMD can develop a leading CPU, it will shorten their gap from Intel and reach more than 40% of the market share within five years.

When that happens, Intel can no longer belittled AMD.

Feng Yu met up with Liu Chuanzhi and the rest again to discuss the production of a new product.

*** You are reading on https://webnovelonline.com ***

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