Push for Intel Probe Could Lift AMD Plan

By Larry Rulison, Albany Times Union, N.Y.

Oct. 23–U.S. Sen. Charles Schumer, D-N.Y., has asked the Federal Trade Commission to open a formal investigation into alleged antitrust violations by Intel Corp.

The move could have broad implications for efforts by Advanced Micro Devices Inc. to build a $3.2 billion computer chip factory in Saratoga County.

Intel is AMD’s main rival for microprocessors that run in personal computers, although Intel has long held a strong grasp on a majority of the market.

AMD has accused Intel of anti-competitive practices, and the European Commission and the Japan Fair Trade Commission have formally taken action against Intel.

In the past, AMD has said that any legal action that puts AMD on a more level playing field with Intel would drive the need for AMD to make more computer chips — which would be good for its plans in New York.

AMD wants to build the factory, also known as a chip fab, at the Luther Forest Technology Campus in Malta. The Sunnyvale, Calif.-based company has until July 2009 to go ahead with the project and still be eligible for $1.2 billion in state economic development incentives, including $650 million in cash.

Schumer and U.S. Rep. Kirsten Gillibrand, D-Greenport, wrote to FTC Chairwoman Deborah Platt Majoras in August, asking for a formal investigation into Intel.

On Sept. 14, the FTC wrote the senator back, saying the issue is receiving “careful consideration.”

The letter did not say if a formal investigation would be opened, noting that ongoing investigations are not made public.

Intel officials did not immediately respond to a request for comment.

On Monday, Schumer told the Times Union he wants the FTC to take a more aggressive approach with Intel.

“AMD is a great New York company,” he said. “We want to do everything we can to help them.” He then stressed that he and Gillibrand are not pressuring the FTC on behalf of AMD out of concern that the chip fab will not get built here if they don’t.

“This is not a quid pro quo,” Schumer said.

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