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AMD announces x86 licensing deal, $293 million joint venture to build servers for China

Question asked by kingfish on Apr 22, 2016
Latest reply on Apr 24, 2016 by black_zion

"Over the past year, AMD has often hinted that it would announce a major new semi-custom win in early 2016. Yesterday evening, it finally did so, and it’s a more significant announcement than investors or analysts were expecting. AMD has formed a new joint venture with THATIC (Tianjin Haiguang Advanced Technology Investment Co., Ltd). to build SoCs for the Chinese server market. AMD expects the total value of the deal to be $293 million, with $52 million in revenue recognized over the course of 2016.

Much of the company’s conference call was devoted to discussing AMD’s expectations for the coming year rather than focusing on the previous quarter. According to AMD, it is licensing technology to its Chinese partner, not market-ready products — but the company noted that its core expertise is in x86 processors with some additional valuable IP in server fabrics (likely acquired via SeaMicro). Asked point-blank whether AMD had licensed x86 IP to the THATIC joint venture, CEO Lisa Su confirmed that it had."