Just days after the FTC announced that it has begun pursuing an antitrust case against Intel Corp., the bureau has published a list of proposals (PDF) that, in part, directly advise the company on how to simplify the terms of their x86 and chipset licenses in favor of competitors.
Point 17 in the FTC’s list of contemplated reliefs suggests that the department may force Intel to license interoperability information for both CPUs and chipsets.
“Requiring Intel to make available technology (including whatever is necessary to interoperate with Intel’s CPUs or chipsets) to others, via licensing or other means, upon such terms and conditions as the Commission may order, including but not limited to extensions of terms of current licenses,” the FTC writes.
This requirement, should it come to pass, would permit NVIDIA, SIS and VIA to develop Intel-compatible chipsets for contemporary processors. At present, NVIDIA and SIS are licensed to develop chipsets compatible with the Core 2 series, while VIA may make x86 processors, but they can no longer develop chipsets which are compatible with Intel processors, nor develop processors compatible with Intel sockets.
However, even if Intel were legally compelled to open the specifications, it would do little for market competition given that the market standard is to produce CPUs with integrated memory controllers, with several models containing integrated GPUs (Clarkdale), or even PCIe controllers (Lynnfield). This has reduced the role of the chipset to multimedia, I/O and PCI Express, with the last item soon dissolving in favor of a single-chip solution which handles media and I/O, while the CPU handles everything else.
Beyond chipsets, the FTC is also contemplating provisions which would bar Intel from preventing x86 licensees to outsource production of x86-compatible chips.
“Prohibiting Intel from including or enforcing terms in its x86 licensing agreements that restrict the ability of licensees to change ownership, to obtain investments or financing, to outsource production of x86 microprocessors, or to otherwise partner with third parties to expand output,” the FTC writes.
This would, for example, prevent Intel from threatening foundry partners as it did when the company rattled its sabres at AMD for gifting a manufacturing contract to its Globalfoundries spinoff, a foundry in which AMD only holds a minority stake. Further, proposal number 23 would specifically prevent Intel from “suing or threatening to sue its competitors’ third-party fabricators.”
Most interestingly, permitting the licensees to “change ownership” with the x86 license in tow would, for example, permit NVIDIA to acquire VIA Technologies to pick up an x86 license of its own. This arrangement, however, would be unlikely to grant the new licensees access to instructions and extensions developed after the license was transferred.
While it’s nice to think of a market where many players are granted the ability to develop compelling Intel-compatible chips and chipsets, the growing trend of baking platform-level logic into the CPU’s die naturally and thoroughly limits the value and performance impact of the chipset. In turn, permitting Intel to withhold architectural additions subsequent to a license transfer will not sufficiently incentivize new competitors in the x86 space.
In short, don’t expect an FTC victory to substantially alter the landscape of the CPU market.
Articles RSS