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Name Alexandra Tohme
Current Position Community Builder
Company Name Zawya
Sector Information Technology
Age 33
Alexandra Tohme
Community Builder
About Me
Cash for chips - semiconductor scandal
Posted: 05-Nov-2009
 


Back in 2005 DellDellLoading... computers were “sticking” to IntelIntelLoading... chips, slower than their competitors from Advanced Micro DevicesAdvanced Micro DevicesLoading... (AMDAMDLoading...).  Although DellDellLoading... was losing customers, IntelIntelLoading... had paid DellDellLoading... over $1 billion in the previous year – which was “more than sufficient to compensate for the competitive issues”.

Rebates and co marketing arrangements are nothing new in the world of computers and the manufacturers of component parts


IntelIntelLoading... has spent the last 5 years battling antitrust allegations in Europe and Asia, and the latest filing comes from the New York Attorney General.


IntelIntelLoading... have been accused of bribery and coercion and punishment tactics to maintain their monopoly.


Closer to home, shareholders of the worlds 3rd biggest maker of semiconductor chips – Chartered Semiconductor Manufacturing from Singapore, have now agreed to Abu Dhabi Advanced Technology Investment Company (ATIC) buying the company for $1.8 billion.


Earlier this year, ATIC collaborated with AMDAMDLoading... to create a joint venture, GlobalFoundries, and as we speak they are currently in the middle of constructing the largest semiconductor foundry in the US, in, yes you guessed it -  New York


This of course will allow AMDAMDLoading... to battle IntelIntelLoading... on an equal footing, since the latter works with the second largest maker of semiconductors – Taiwan Semiconductor Manufacturing Company.


If AMDAMDLoading... and IntelIntelLoading... are two fighting kids in the playground, AMDAMDLoading... clearly can call on its “big brother” Abu Dhabi to come and help.


However, all is not well in the AMDAMDLoading... household. Former CEO of AMDAMDLoading..., Hector Ruiz, moved to be Chairman of its spinoff, GlobalFoundries. But reports of insider trading in which Ruiz and others were implicated sent AMDAMDLoading... stock down by 6% and could ultimately cost larger losses in confidence.


Could this be IntelIntelLoading... calling on “Big Sister”?


Let’s wait and see.

 

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