On November 17, AMD and ADI, the semiconductor company, jointly announced that they had reached a settlement on all the ongoing semiconductor patent legal disputes. As part of the resolution, the two sides committed to technical cooperation to provide their communications and data center customers with next-generation solutions.
ADI is a multinational semiconductor equipment manufacturer, specializing in manufacturing ADC, DAC, MEMS and DSP chips for consumer and industrial products. It is understood that in December 2019, ADI filed a patent infringement lawsuit, claiming damages for the unauthorized patent of Xilinsi, and prohibited Xilinsi from selling any product that infringed its patent.
Xilinx is currently the world's largest producer of programmable chip FPGAs, and has a leading position in the global FPGA market. Its programmable chip FPGAs are mainly used for data center business. In February 2022, Xilinsi was owned by AMD with a revenue of nearly 50 billion dollars. The acquisition complements AMD's product portfolio and enables it to have three product lines: CPU+GPU+FPGA.
After the completion of the acquisition, AMD will naturally face a lawsuit from ADI, but the two parties have not released any information about this content. After reaching a settlement this time, the two sides promised to carry out technical cooperation.
This year, due to the impact of epidemic, high inflation, local international conflicts and other factors, the global economic growth has slowed down significantly. In addition, the lack of consumer power has highlighted the imbalance between supply and demand in the overall industry. The industry pointed out that the semiconductor market has entered a downward cycle.
In terms of revenue, AMD's revenue in the third quarter of this year was $5.6 billion, operating loss was $64 million, and net income was $66 million. AMD believes that the third quarter performance was lower than expected due to the weakness of the PC market and the sharp reduction of inventory in the entire PC supply chain.
However, AMD said that although the macro environment is full of challenges, thanks to the sales growth of data center, embedded and game console products, the company achieved a year-on-year revenue growth of 29%. In the future, the company is confident to fully cope with the current volatile market environment.
Nowadays, in the semiconductor environment where the cold wind blows directly, the benefits of shaking hands between the two sides are always better than the "one-on-one" competition.