Under the cold air of semiconductors, AMD and ADI shake hands and make peace
2023-08-31
Under the cold air of semiconductors, AMD and ADI shake hands and make peace
On November 17th, semiconductor companies AMD and ADI announced that they have reached a settlement on all ongoing semiconductor patent legal disputes. As part of this resolution, both parties commit to engaging in technological cooperation to provide next-generation solutions for their communication and data center customers.
ADI is a multinational semiconductor equipment manufacturer that specializes in manufacturing ADC, DAC, MEMS, and DSP chips for consumer and industrial products. It is reported that in December 2019, ADI filed a patent infringement lawsuit against Xilinx, demanding damages for unauthorized patents and prohibiting Xilinx from selling any products that infringe on its patents.
Xilinx is currently the world's largest producer of programmable FPGA chips, with a leading position in the global FPGA market. Its programmable FPGA chips are mainly used in data center operations. Xilinx was acquired by AMD for nearly $50 billion in February 2022. This acquisition completes AMD's product portfolio and enables it to have three major product lines: CPU+GPU+FPGA.
After the acquisition is completed, AMD will naturally face lawsuits from ADI, but neither party has released any information regarding this matter since then. After reaching a settlement this time, both parties promised to carry out technical cooperation.
Since the beginning of this year, due to multiple factors such as the impact of the epidemic, high inflation, and international conflicts, the global economic growth rate has significantly slowed down. Coupled with insufficient consumer power, the overall industry supply-demand imbalance has become prominent. The industry points out that the semiconductor market has entered a downward cycle.
In terms of revenue, AMD's third quarter revenue was $5.6 billion, with an operating loss of $64 million and a net income of $66 million. AMD believes that due to the sluggish PC market and significant inventory reduction throughout the PC supply chain, the third quarter performance was lower than expected.
However, AMD stated that despite the challenging macro environment, the company achieved a 29% year-on-year increase in revenue thanks to sales growth in data centers, embedded systems, and gaming console products. In the future, the company is confident in fully responding to the current volatile market environment.
In the current semiconductor environment where the cold wind blows directly, the benefits brought by shaking hands and walking together are always better than competing alone.
Popular Articles
BORN SEMICONDUCTOR(SHENZHEN)CO.,LTD
7/F and 13/F, Senheinokochuang Building, Gaoke Industrial Zone, Dezheng Road, Shiyan Street, Bao 'an District, Shenzhen
Factory Address: Building 6, Intelligent Hardware Industry Port, Intersection of Zheng Bei Avenue and Tan Huai Avenue, Muluan Street, Wuzhi County, Jiaozuo City, Henan Province
