Intel has been dominating the X86 CPU market for several years now, but things might get more interesting now that a new competitor is entering the market.
AMD announced its plans to license its X86 patents and its top-of-the-line server processor designs to a newly formed Chinese company, creating a brand-new rival for Intel.
AMD is licensing its x86 processors and system-on-chip technology to THATIC (Tianjin Haiguang Advanced Technology Investment Co. Ltd.), a joint venture between AMD and a consortium of public and private Chinese companies.
AMD will provide all the patents and technology needed to make server chips while THATIC will handle production.
Analysts believe that this is a right move for the cash-strapped AMD as it would expand the install base of its technology and provide a constant revenue stream from licensing fees. "I would expect more deals like this in areas AMD can’t reach with their platforms or resources. I would expect arrangements not just for their CPU technology but also their GPU technology," said Patrick Moorhead, president and principal analyst at Moor Insights and Strategy.
AMD and Intel have a cross-licensing agreement, which allows each of them to design and sell chips compatible with the other's instruction set and architecture. The agreement covers the entire patent portfolio for both companies, which includes CPU, GPU and all other chipsets. AMD is confident its new arrangement with THATIC doesn't violate the cross-licensing terms.
