AMD licenses CPU technology to Chinese manufacturer

AMD licenses its x86 processor and system-on-a-chip technology to the Chinese joint venture Thatic. This AMD company and a collection of Chinese companies will use the technology for server chips, with which Intel may get a competitor.

The joint venture called Tianjin Haiguang Advanced Technology Investment Co., or Thatic, will focus on developing socs for servers for the Chinese market. The collaboration between AMD and a consortium of Chinese companies and the Academy of Sciences in the country should complement AMD’s offering with the products.

AMD CEO Lisa Su emphasizes when discussing the quarterly figures that only AMD technology is licensed, with which she tries to allay concerns about possible charges by, for example, Intel. The agreement, which is not exclusive, will bring in a total of $293 million for AMD, of which approximately $50 million will be transferred in the first quarter. According to Su, it is very important to have a local partner in the Chinese server market, which AMD expects to grow strongly. According to the CEO, the move is part of AMD’s strategy to re-enter the data center market, where Intel is currently still lord and master.

AMD’s quarterly revenue fell 19 percent year-on-year to $832 million. This decline was primarily attributable to lower shipments of notebook processors and semi-custom socs such as those for the PS4 and Xbox One. The chip designer suffered a quarterly loss of $ 68 million, compared to $ 137 million last year.