AMD Denies Report That It Improperly Shared Chip Technology With China

WSJ had reported that AMD’s decision to help Chinese partners develop advanced computer-chip technology revived its fortunes.

By Gadgets 360 Staff | Updated: 1 July 2019 12:36 IST

Advanced Micro Devices or AMD, the American multinational semiconductor company, has dismissed reports that it had improperly transferred critical microprocessor technology to Chinese partners, the media reported. In a strongly-worded statement, the Santa Clara-based semiconductor firm said that it did "everything correctly and transparently" and did not violate the US law, the Gizmodo reported on Saturday.

AMD was reacting to a report in the Wall Street Journal that cited officials as stating that its THATIC partnerships involved "a leading Chinese supercomputer developer, a state-backed military supplier called Sugon Information Industry," gave China access to 'state-of-the-art x86 chips' only produced by AMD and Intel.

“In exchange, the Chinese government gave AMD a lifeline: $293 million in licensing fees plus royalties on the sales of any chips developed by the venture,” WSJ wrote.

The semiconductor company reportedly said the technology used in its joint venture named Tianjin Haiguang Advanced Technology Investment or THATIC did not involve its high-performance chipsets and had been approved for sharing by the Commerce Department.

The company fired back at several of the claims, saying it had extensively consulted with federal officials and that it placed strong controls to prevent its technology from being stolen.

AMD also stated that the technology was "of lower performance than other commercially available processors", the Gizmodo report added.

Written with inputs from IANS

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