The most resonant statement AMD quarterly report was the news about the formation of a joint venture with THATIC - Chinese investment consortium, which affects the local Academy of Sciences. In the course of communication with analysts, AMD representatives told about the additional details of the creation history of the joint venture, in which will be developed processors for the server market in China. AMD Leaders stressed that the Chinese license processor technology and patents, rather than specific finished products. They relate both to the classical central processors and to the integrated solutions like system on a chip.
The joint venture will have the right to develop and produce x86-based processors for server applications. However, the Chinese will decide for themselves what type of servers they create direct processors, given the characteristics of the local market. It can be both enterprise servers and telecommunication solutions, supercomputers for scientific institutions. The main part of the licensing revenue ($ 293 million.) Under a contract with the Chinese company will go on AMD accounts in the next two years. This contract has a statute of limitations, after setting designed processors on the conveyor and achieve some AMD release volumes will receive a royalty from each sale of the processor.
In the future, AMD plans to actively monetize its patent potential. And it's not limited to the licensing of technology. Some patents that are not required on the main topical areas of activity, can be sold "for ever". By the way, the agreement with the Chinese is not exceptional, AMD reserves the right to offer same technology to other potential customers. AMD did not rule out that the production joint venture of processors will be deployed in China.