AMD Response to a Recent Article in The Wall Street Journal
June 27, 2019
AMD has released the following statement regarding a story that appeared on The Wall Street Journal website on Thursday June 27, 2019 entitled “How a Big U.S. Chip Maker Gave China the ‘Keys to the Kingdom’”.
The Wall Street Journal story contains several factual errors and omissions and does not portray an accurate picture of the joint ventures that AMD entered into with THATIC in early 2016.
AMD takes strong exception to characterizations in the story that it did not act properly or transparently in creating the joint ventures.
Starting in 2015, AMD diligently and proactively briefed the Department of Defense, the Department of Commerce and multiple other agencies within the U.S. Government before entering into the joint ventures. AMD received no objections whatsoever from any agency to the formation of the joint ventures or to the transfer of technology – technology which was of lower performance than other commercially available processors. In fact, prior to the formation of the joint ventures and the transfer of technology, the Department of Commerce notified AMD that the technology proposed was not restricted or otherwise prohibited from being transferred. Given this clear feedback, AMD moved ahead with the joint ventures.
The Wall Street Journal story omits important factual details, including the fact that AMD put significant protections in place to protect its intellectual property (IP) and prevent valuable IP from being misused or reverse engineered to develop future generations of processors.
AMD’s belief is that it did everything correctly and transparently in interactions with the US Government in advance of and since forming these joint ventures. We recognize that there are increased sensitivities and concerns today around national security and technology.
In compliance with the amended U.S “Entities List,” AMD has restricted the sale and purchase of products and taken steps to ensure that no technology transfers occur to listed entities.
As a company, AMD strictly complies with all U.S. laws, and cares deeply about the national security interests of the United States. The company will continue to work with the U.S. Government and others to ensure strong protections of intellectual property and best practices in corporate citizenship and transparency.
Senior Vice President, General Counsel and Corporate Secretary