Hardware

Wall Street Journal accuses AMD of working and even colluding with the Chinese government

The American media Wall Street Journal publishes a report charging AMD for working with Chinese companies in the manufacture of processors.

The policies and words of Donald Trump seem to be making a dent in the American press. The prestigious Wall Street Journal has published the following article: “How a Major US Chipmaker Gave China the “Keys to the Kingdom”. This article refers directly to AMD and its recent relationships with the Asian giant.

All part of the agreement between AMD and the 'joint venture' THATIC, signed in 2016. This agreement is that the Chinese company can use the x86 licenses and AMD SoCs, especially an agreement focused on Zen. This represented an income of $ 293 million plus royalties. And now the case explodes after the someTrump administration vetoed THATIC.

Note: And to think that he had the Wall Street Journal as a serious medium, which he admired and respected. Gross.

Precedents on which the incendiary note is based

THATIC is based on a fairly intricate set of Chinese public and private companies. Among them is the Chinese Academy of Sciences, heavily influenced by the government. AMD and THATIC reportedly created a joint product company, which makes Dyhana chips tailored for that market. Some have called the deal dangerous because it allows the Chinese government access to technology that it could use in the military field.

The United States Department of Commerce has added THATIC and its affiliates to the list of vets companies because they are owned by Sugon. They hide that Suguon is "acting against the national security or foreign policy interests of the United States"

The translation of this is: we do not want you to advance technologically and you can overtake us in science and technology. We want to continue to be the biggest in all areas and control the world to our liking. We prefer that you be our slaves.

Wall Street Journal charges AMD for working with Chinese companies

The WSJ says its information is based on “interviews with more than a dozen current and former government officials familiar with AMD's deal with China, senior chip industry executives, advocates, and presentations from companies and governments in the United States. United States and Canada. "

According to the WSJ data, all the details of the JV were required from AMD to be reviewed by the Committee on Foreign Investment of the US (CIFUS). They say AMD refused because CIFUS did not have jurisdiction in joint ventures.

Said report also speaks of maneuvers by the company that are not exact or complete. They comment that important factual details are omitted, especially regarding the mechanisms that AMD implemented to protect its intellectual property and prevent reverse engineering.

What happens to the agreement?

AMD during Computex 2019, from the hands of its CEO, Lisa Su, said that the company would not license Zen2. I do not comment on the end of the agreement with Zen architecture, so we assume that it is in force. It seems that AMD has no interest in anyone external to work with the Zen2 architecture or they already knew that this was underway and to avoid more fuss, they have preferred not to reissue the agreement.

Seeking Alpha's Austin Craig says AMD only collected $ 86 million in royalties in 2018 and $ 13 million as of March 2019. The total proceeds are less than $ 400 million, a figure that would not be big thing in the company's annual accounts.

Statement issued by AMD (translated by translator)

AMD has issued the following statement regarding a story that appeared on The Wall Street Journal website on Thursday, June 27, 2019, titled “How a Big U.S. Chipmaker Gave China the ‘Keys to the Kingdom.’”

The Wall Street Journal story contains several errors and omissions of fact and does not present an accurate picture of the joint ventures that AMD entered into with THATIC in early 2016.

AMD takes a strong exception to the characterizations in history that it did not act appropriately or transparently in creating the joint ventures.

Beginning in 2015, AMD diligently and proactively informed the Department of Defense, the Department of Commerce, and many other agencies within the United States Government prior to participating in the joint ventures. AMD did not receive any objections from any agency to the formation of joint ventures or the transfer of technology, a lower performance technology than other commercially available processors. In fact, prior to the formation of the joint ventures and the transfer of technology, the Commerce Department notified AMD that the proposed technology was unrestricted or otherwise prohibited from transferring. Given this clear answer, AMD went ahead with the joint ventures.

The Wall Street Journal story omits important factual details, including the fact that AMD implemented significant protections to protect its intellectual property (IP) and prevent valuable intellectual property from being misused or reverse-engineered to develop future generations of processors.

AMD's belief is that it did everything correctly and transparently in interactions with the US government before and after the formation of these joint ventures. We recognize that today there are more sensitivities and concerns around national security and technology.

In compliance with the amended U.S. Entity List, AMD has restricted the sale and purchase of products and taken steps to ensure that no technology transfers occur to entities on the list.

As a company, AMD strictly complies with all US laws and cares deeply about the national security interests of the United States. The company will continue to work with the US government and others to ensure strong intellectual property protection and best practices in corporate citizenship and transparency.

Harry wolin

Senior Vice President, Legal Counsel and Corporate Secretary

Personal opinion

AMD has the right to work with the company it really wants. It should be noted that AMD works with public universities in the United States and around the world and there is no problem. He also works with all kinds of companies and I'm sure many have government holdings.

A very clear and obvious campaign is being orchestrated against any company that works with Chinese companies. Americans are obviously self-centered and that's fine. If China surpasses them in the technological field, let them wake up, not that they fry them to sanctions and tariffs to avoid it.

Clearly the United States wants the whole world to be its slave. They are not interested in being overshadowed by anyone, they just want skilled labor at a very low price. It is time for this American pantomime to end. They are not anyone's saviors, just self-centered egomaniacs who only sow death and destruction wherever they tread.

Show more

Robert Sole

Director of Contents and Writing of this same website, technician in renewable energy generation systems and low voltage electrical technician. I work in front of a PC, in my free time I am in front of a PC and when I leave the house I am glued to the screen of my smartphone. Every morning when I wake up I walk across the Stargate to make some coffee and start watching YouTube videos. I once saw a dragon ... or was it a Dragonite?

Related publications

Leave your comment

Your email address will not be published. Required fields are marked with *

Button back to top
CLOSE

Ad blocker detected

This site is funded through the use of advertising. We always make sure that the advertising is not too intrusive for the reader and we prioritize the reader's experience on the website. However, if you block the ads, part of our funding will be reduced.