Intel cites AMD

Sunday, January 24, 2010

In a recent response to longstanding antitrust accusations from chipmaking rival Advanced Micro Devices, Intel included in a Federal Trade Commission filing a quote from one of AMD's own executives critical of AMD chips.

Near the top of the document is the most condemning statement against AMD--an excerpt of a 2004 internal AMD communication from former AMD Executive Vice President Henri Richard, the company's then-highest-ranking sales executive: "If you look at it with an objective set of eyes, you would never buy AMD. I certainly would never buy AMD for a personal system, if I wasn't working here."

The Intel response (PDF), according to Intel spokesman Chuck Mulloy, was posted on the FTC Web site on Friday. Although Intel agreed to pay AMD $1.25 billion to settle an antitrust case in November, the FTC continues to pursue the case against Intel.

Intel got the internal AMD communication through the discovery process, Mulloy said. "Over time, more and more [of] this kind of information will be available in the case," he said Wednesday.

AMD technology has gone through periods when its chips have been decidedly less competitive than Intel's, according to Jim McGregor, chief technology strategist at research firm In-Stat. "You're looking at a period of time when AMD wasn't necessarily the most competitive product out there. AMD has gone through cycles," he said, adding that Intel has gone through a similar competitiveness ebb and flow.

Nevertheless, it is a stinging indictment of AMD processors. AMD has accused Intel of essentially blocking PC makers from buying its chips by using alleged anticompetitive business practices. (AMD has claimed that PC makers would rather buy its chips but were pressured not to.) "From a positioning standpoint, [Richard's] is a harsh statement against your own product," McGregor added.

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