Tell a Friend About CR4
Engineering Toolbar
Search GlobalSpec
Login | Register
Home | Semiconductor Fabrication | Pricing Practices Fallout


Semiconductor Fabrication

The Semiconductor Fabrication Blog is the place for conversation and discussion about manufacturing processing equipment, semiconductor test and measurement, products & services, and semiconductor materials. Here, you'll find everything from application ideas, to news and industry trends, to hot topics and cutting edge innovations. This blog is inspired by the Semiconductor Fabrication newsletter from GlobalSpec, which you can subscribe to here.
Previous in Blog: More Green Can Mean Less Green   Next in Blog: But You Discovered It First!
Close

Comments Format:






Close

Subscribe to Discussion:

CR4 allows you to "subscribe" to a discussion
so that you can be notified of new comments to
the discussion via email.

Close

Rating Vote:







4 comments
Subscribe Rate this Comments: Nested

Pricing Practices Fallout

Posted June 07, 2009 7:05 AM

By now everybody is aware that the EU is attempting to levy a fine of nearly $1.5 billion against Intel. Intel contends that if the fine stands, the entire industry may suffer and prolong the recession. Yet many industry experts expect the company can survive this indignity relatively unscathed. How would the levying of such a huge fine on Intel affect your business model? How would it impact your relationship with the semiconductor giant? How will it affect your cost of doing business? Your ability to make and sell products into the European Union? How quickly will Intel recover? How quickly will the industry shrug off the effects?

The preceding article is a "sneak peek" from Semiconductor Fabrication, a newsletter from GlobalSpec. To stay up-to-date and informed on industry trends, products, and technologies, subscribe to Semiconductor Fabrication today.

Interested in this topic? By joining CR4 you can "subscribe" to
this discussion and receive notification when new comments are added.

Comments rated to be Good Answers:

These comments received enough positive ratings to make them "good answers".

Comments rated to be "almost" Good Answers:

Check out these comments that don't yet have enough votes to be "official" good answers and, if you agree with them, rate them!
2
aurizon
Guru
Hobbies - HAM Radio - New Member United Kingdom - Big Ben - New Member Fans of Old Computers - Altair 8800 - New Member Canada - Member - New Member

Join Date: Jun 2006
Location: Toronto
Posts: 2771
Good Answers: 46
#1

Re: Pricing Practices Fallout

06/08/2009 9:19 AM

Intel was responsible for egregious price linking to place price pressure on computer makers to avoid AMD chips, so that Intel could kill AMD and charge $1000 per CPU.

The large makers were given, at first, price discounts, later, so called co-op advertising $$ to hide the discount. You did not get this if you used both AMD chips and Intel chips.

At the retail level, Intel paid for 50% of your advertising if they occupied 50% of the page, but only if you did not advertise an AMD product in the otherb 50%.

Intel can afford it, Intel is guilty as charged.

__________________
Per Ardua Ad Astra
Good Answer (Score 2)
No more Good Answers. Go to first "Almost" Good Answer
phoenix911
Guru
Hobbies - CNC - New Member Hobbies - DIY Welding - New Member

Join Date: Aug 2007
Posts: 3047
Good Answers: 28
#2

Re: Pricing Practices Fallout

06/08/2009 3:39 PM

They can afford it... yes.

Paid to the EU....no

Paid to AMD .......how fitting.

__________________
They say that there is only one universal language that everybody can understand and that is mathematics. I like to think there are two, with the other being humor.
aurizon
Guru
Hobbies - HAM Radio - New Member United Kingdom - Big Ben - New Member Fans of Old Computers - Altair 8800 - New Member Canada - Member - New Member

Join Date: Jun 2006
Location: Toronto
Posts: 2771
Good Answers: 46
#3
In reply to #2

Re: Pricing Practices Fallout

06/08/2009 4:09 PM

Many of the major computer makers bought AMD regardless the potential loss of the discounts and ad-sharing. IBM and HP/Compaq were aware of the savings in CPU prices that competition brought, so they kept AMD alive.

Now AMD has a winning server architecture and should regain market share incrementally until the middle of 2010, when Intel will get a better CPU into production

__________________
Per Ardua Ad Astra
phoenix911
Guru
Hobbies - CNC - New Member Hobbies - DIY Welding - New Member

Join Date: Aug 2007
Posts: 3047
Good Answers: 28
#4
In reply to #3

Re: Pricing Practices Fallout

06/08/2009 4:53 PM

I understand AMD develop the 128 bit architecture platform when all others give up on that.........still.........when a large company like intel tries to crush a smaller yet fresher new ideas company such as AMD........I still like to see that fine go to AMD.........or better yet a business incubator for new product design/development.

Not have the fines go to the bloated EU who just wants to punish even more bloated company's

__________________
They say that there is only one universal language that everybody can understand and that is mathematics. I like to think there are two, with the other being humor.
Score 1 for Good Answer
No more "Almost" Good Answers.
4 comments
Interested in this topic? By joining CR4 you can "subscribe" to
this discussion and receive notification when new comments are added.

Comments rated to be Good Answers:

These comments received enough positive ratings to make them "good answers".

Comments rated to be "almost" Good Answers:

Check out these comments that don't yet have enough votes to be "official" good answers and, if you agree with them, rate them!

Previous in Blog: More Green Can Mean Less Green   Next in Blog: But You Discovered It First!
You might be interested in: CPU Chips, Computers, All Types, Handheld and Portable Computers


"We shall find peace. We shall hear angels. We shall see the sky sparkling with diamonds." -- Anton Chekhov

All times are displayed in US/Eastern (EST) (Register to change time zone)

©2005-2009 GlobalSpec. All rights reserved.
GlobalSpec, the GlobalSpec logo, SpecSearch, The Engineering Search Engine
and The Engineering Web are registered trademarks of GlobalSpec, Inc.
CR4 and Conference Room 4 are registered trademarks of GlobalSpec, Inc.
No portion of this site may be copied, retransmitted, reposted, duplicated or
otherwise used without the express written permission of GlobalSpec Inc.
350 Jordan Rd, Troy, NY, 12180

Got Something to Say?


Search this Blog
Semiconductor Fabrication:

Search all of CR4

Recent Blog Entries
  • Who Will Foot the Bill?
  • Never Fly When You're in a Hurry
  • You Could Fry an Egg!
  • Where Do We Go From Here?
  • The End of an Era?
  • But You Discovered It First!
  • Pricing Practices Fallout
  • More Green Can Mean Less Green
  • China Wants a Slice of the Semi Pie
  • Alliances for Conquest
  • Show all Blog Entries

    • CR4 Sections
    Automotive
    BioMech & BioMed
    Chemical & Material Science
    Civil Engineering
    Communications & Electronics
    Education
    Electrical Engineering
    Engineering Careers
    General
    Instrumentation
    Manufacturing
    Mechanical Engineering
    New Technologies & Research
    Software & Programming
    Sustainable Engineering

    Site Indices
    Forum Index
    Blog Index
    User Group Index
    RSS Feeds
    CR4 Store

    CR4 FAQ
    Site Glossary

    Who's Online (114 right now)
    Show Members