Friday, 13 March 2009

Intel - Under Pressure from EU Commission

There is a chance that Intel will be fined heavily by the EU Commission if it is proven that the chip giant abused its powers by giving rebates to companies for not using AMD chips. It will be a blow to the Santa Clare company but economist stated that with a huge fine, it will not dampen the cash flow of Intel but it is just slap on the wrist for Intel. This is because they have a huge cash flow and with ten percent of their profit, it will not do anything major to the company.


This follows a 2004 suit filed by many companies against Microsoft for abusing their position. They were fined around £300 million by the EU Commission. We are seeing a repeat but this time will be complaints from AMD. The matter was fired up as a result of a court fine of $26 million to authorities by not using AMD in Korea.


Well, one thing for sure, AMD will not be the sole winner in this case. No doubt that it will have a dent on Intel but nevertheless, AMD is facing a major problem. Their AMD/ATI pact is still not paying off. AMD CPU is suffering from severe delays which gave Intel the edge. I don't really know what AMD is coming up with but I surely hope that they will be much faster in releasing their CPUs. Whilst their ATI arm is doing good, they need to ensure that their CPU is also doing good. There is no point in getting ATI running but their AMD is losing to Intel. Look, Intel has released their 45nm CPU ages ago before AMD released theirs. AMD's first quadcore, the Phenom suffered heavily from the renown TLB and produced too much heat. With the Phenom II, it seems that it can shake away Intel's dominance in their Core i7 CPU.


Oh yes, with the release of a better quadcore CPU from Intel which is called Q9550S, I think AMD will have to rethink about their strategy now. Intel is not going to lose out to AMD easily.


For more information, here is the page leading to the news of a possible fine to Intel.

4 comments:

GP said...

hmmm...i see you have removed me as your blog's follower...it's ok then, take care & God Bless.

Joe said...

It was done by mistake, perhaps?

ぜるもう said...

No mistake...I have stopped ALL followers as some individuals are taking mickey. Sorry fellows...

ぜるもう said...

I have now restored to the original position. I hope that there will be no more nonsense now.