Record EU fine against Intel impacts AMD


A record fine for Intel in Europe could have implications for the computer chip company created as a spinoff of AMD that's in the process of coming to the Capital Region. Our Steve Ference reports.

ALBANY, N.Y. -- "They appear to have made a decision that involves a fine of $1.06 billion Euros," said Intel President & CEO Paul S. Otellini, responding in a worldwide teleconference to a European Union decision that means a major fine for the computer chip maker. Intel allegedly paid computer companies to use their chip - and not AMD's.

"Intel strongly disagrees with this decision," said Otellini.

While the fine is making international news, the fact that Capital Region folks are paying attention shows Tech Valley may have arrived. AMD is setting up its chip-making offshoot - GLOBALFOUNDRIES in Saratoga County - and Intel works with UAlbany. Intel argues all they did was compete better than AMD.

Record EU fine against Intel impacts AMD
A record fine for Intel in Europe could have implications for the computer chip company created as a spinoff of AMD that's in the process of coming to the Capital Region. Our Steve Ference reports.

Intel Acting Regional Spokesman John D'Alessandro said, "I think it's going to be very clear to everyone involved - industry people and consumers - that what's happened in this time period, 2000 to 2007, was just a good old fashioned competitive battle."

The impact for people not only in Tech Valley but anyone who uses a computer is unclear. Intel says that prices for chips and processors has basically been dropping regardless.

GLOBALFOUNDRIES issued a statement saying, "Today is an important day for our industry and technology consumers worldwide. The EU ruling not only supports a competitive marketplace but also helps make the construction of our new facility in New York and the creation of new advanced manufacturing jobs in the region a reality."

"It's a significant ruling," said RPI Enterprise Mgt. & Organization Assistant Professor Shyam Kumar.

While the two companies have two very different takes on the ruling, Kumar said the fine won't affect Intel's bottom line - or consumer pricing - but any decision against Intel is likely AMD's gain.

Kumar said, "It should definitely make them more competitive in the global marketplace."

Meanwhile, US authorities who are investigating Intel seem to be clamping down on anti-trust cases - as AMD's GLOBALFOUNDRIES moves ahead with their upstate move-in.

The bottom line here is that there is certainly plenty of details to sift through in the decision. It will take time to figure out the true implications. In the meantime, Intel said it will likely take a few years for the appeal to go through.

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