Zibb

Ed SperlingOffering news and business analysis for the design engineer, Managing News Editor Suzanne Deffree filters the electronics industry's developments and trends to explain how what's happening in the board room today can impact the tech innovation of tomorrow.



   Advertisement

Profile

RSS Feed

  • Add this blog to your RSS newsreader!

Recent Posts

Recent Comments

Most Commented On

Archives

By Category

News Center Articles

Blog

Thursday, January 10, 2008

Something’s fishy in the state of New York

Jan 10 2008 3:17PM | Permalink |Comments (8) |


Once upon a time, I covered politics at the local and state level here in New York. I was reminded today why I left that world for tech.

See our story on the New York State anticompetitive probe into Intel, “Intel antitrust allegations mount as New York launches probe.” Granted, the case against Intel is growing stronger and stronger by the week: Beyond the United States, Europe, Japan, and Korea have questioned if the chipmaker is playing by the rules or bullying PC makers into putting Intel, and only Intel, inside. But such an inquiry from New York State is a bit fishy.

For one, the query focuses on PC OEMs and what PC makers hold New York headquarters? IBM, which has always held court above the Bronx line, doesn’t make PCs anymore. The ink on IBM’s $1.75 billion ThinkPad sale to Lenovo has been dry for two years. The closest OEM is Apple, which has established stores in Manhattan, but that’s it. So, what companies are being defended by State Attorney General Andrew Cuomo and his office with the investigation? Cuomo’s only statement addressing that question in the office’s press release was vague: “Monopolistic practices are a serious concern particularly for New Yorkers who are navigating an information-intensive economy.”

While I’m the first to say New York is the center of the universe, it’s not the center of the tech universe. If this action had come out of California, it would have made sense. But New York, what’s the reasoning?

And second, AMD, Intel’s chief rival as named in the probe, has a $3.2 billion memorandum of understanding with upstate New York to build a fab there. It was also lured there in 2006 with almost $1 billion in incentives.  New York has established that it wants to make the chipmaker happy.

When I spoke with AMD’s representative, I asked if the probe was connected in any way to AMD’s presence in New York. Mike Silverman, a PR manager out of Texas, rightfully answered, “I couldn’t say. That’s really a question for the attorney general’s office.”

So it is. Calls to the office in Albany were transferred to the Manhattan office, where I was connected to someone who reminded me of the very short time I spent covering the world of Paris Hilton (a gig between covering politics and tech that I left and never looked back on). Completely flighty, the girl answering the phones had to put me on hold 6 times over the course of a 4 minute call. Needless to say, I didn’t get an answer, nor has her supervisor called back.

While AMD and Intel returned calls within 15 minutes of our news desk leaving voicemails, it’s been hours now and no call back from the state. I’d like to think this is because the Britney Spears wannabe on the other end of the line didn’t write my number down or perhaps used the message to dispose of her gum, but odds are it’s because the state attorney general’s office doesn’t have an answer or doesn’t want to answer.

Share your thoughts on the Intel investigations, AMD’s place in it all, or New York’s role below.

--Suzanne Deffree, Managing Editor, News


Reader Comments



at 1/10/2008 6:51:53 PM, Jim said:
This is a very obvious ploy by AMD and upper NY state political operatives who've been attempting to lure AMD to build a megafab in the town of Malta.

While people in the State of New York have one of the highest taxes in the country, the politicians think that giving away money in concessions to lure AMD is something that taxpayers want.

Sadly, it is always the special interests who gain the most while the common taxpayer gets the shaft.





at 1/11/2008 1:06:01 PM, Bill said:
This just may be as simple as the business hostile New York government in action. Doesn't matter who it is, or the facts, New York just hates business. Every day I'm glad I moved out of that state.





at 1/11/2008 1:28:56 PM, Jpseph said:
Doesn't seem to be much substantive content in your latest column on Intel. Why not get a copy of the filing(s), read it (them) and then write a column.

Maybe someday the press will stop wasting everyone's time with comments about Britney Spears and Paris Hilton.

And finally, who hasn't suffered the failure of someone to return a phone call?



at 1/11/2008 2:48:48 PM, blk said:
I don't think this is something that hurts the computer makers/OEMs - this is being looked at as hurting the consumers and the last time I looked, NYS has a fair number of those.

A few years back when AMD processors were clearly running faster and taking less power than Intel's it was odd that some companies were ignoring AMD processors. I don't know about now, but sometimes it takes a while before someone decides to do something about unfair practices. If AMD now faulters because of a few recent miststeps, part of the reason for their demise could well be that they were unable to reap enough profit when they were clearly better - Intel was able to regroup and produce a strong comeback, but that might have been more difficult if more had jumped to AMD sooner.

I don't have any knowledge of what the specific complaints might be, but I will assume for now that there is a fair amount of evidence that some wrong-doing took place, else they would not be pursuing this. Where this will end up is anyone's guess, but I would not blast NYS government yet.



at 1/12/2008 8:39:47 PM, Richard said:
It hurts consumers and you should do more research before writing up empty experiences and presumtions



at 1/14/2008 3:39:57 PM, Scunnerous said:
I don't know why you are presuming that this is to do with PC OEMs. Do you not see that consumers & businesses were being hurt by not being allowed to even evaluate AMD64-based systems when Intel had not yet "invented" EMT-64?

Do you think it was good for us as users that, as an example outlined in the AMD complaint, Intel had bribed the management at Best Buy to not present, promote or display any computer system with an AMD CPU? By what logic is it considered normal for a CPU manufacturer to be interfering with and corrupting at the retail channel level?

Have you forgotten that Dell was paid huge amounts, as it turns out their main (sole ?) source of profits during their glory years, by Intel to avoid striking any agreements with AMD for supply of CPUs.

Have you not seen the recent comments by Mr. Negroponte on Intel's brazen attempt to take over OLTPC? They're still "at it" - they just cannot resist because in the end there is something rotten at the core of the company.




at 1/15/2008 9:59:08 PM, NotAnotherLoserLover said:
I worked at Intel for 7 years. Mr. Clean cleanser is dirty compared to those guys. The business culture elevates and demands ethics, - - and anyone even remoted connected with customers or suppliers is trained in anti-trust compliance matters. The first training I received after Intel bought our company was anti-trust training. We were not even on the payroll yet! Plus Intel has refresher trainings for anti-trust, particulary at its annual ISMC (International Sales and Marketing Conference). At Intel you are not allowed to even use "war words" to describe competitive spirit as it applies to "fellow travelers." The word "competitor" was replaced by fellow traveler to keep people sensitive to fairplay. My theory is that AMD is fishing the court system for a few puny decisions (e.g. a few hundred million USD here or there) to pump up a PR campaign meant to discredit Intel. Look at the AMD WEb site. They have a whole marketing site dedicated to law suits against Intel. Face it. Many American people today are emotional weaklings (e.g., they want socialized medicine) and wimps sympathize with weak organizations. In the US, The Man-in-the-Street is growing more wimpy by the minute. The AMD tactic to generate sympathy may work. Sooner or later AMD will find some pinko judge that wants to reward them for being whiney brats who can''t make on their own.



at 2/9/2008 7:22:20 AM, notabeemer said:
Jim and Bill- You could not have said it any better. I am still reluctantly a New Yorker, working in a chip fab (not IBM) and am all too aware of the hostile practices NY takes toward all too many businesses... Four of the high-tech outfits that I have worked for in NY have folded up their tents and left for greener pastures.

About this time last year, I talked to some AMD reps in the state and they said that although they and NY had an "understanding", that ground has not yet been broken in Malta- I do not know if this still holds true- I have one associate that insists the infrastructure is being built now, and I have not researched the matter myself, although I should have the latest "scoop" by March...I hope. My memory of the original deal, however, was that the Malta fab was supposed to be tooling up in 2008.... and it ain''''t there yet.

AMD had better be careful.... once NY lures them in and the fab is up and running, the sweetheart deals will end and Albany will recoup all their so-called "incentives" through some very inventive means.... If some of you readers don''''t believe this, just look up the "STAR" program for private property taxes, which was supposed to lower school taxes across the state significantly. Check out what happened to assessments the same year STAR kicked in, and look at the property taxes across the state since… you will be shocked… and this is a state where school taxes are “subsidized” by a multi-billion dollar Lottery!

We even received “rebates” – the last I think was around $300.00 – BIG WHOOP when your mortgage payment went up $125.00 a month for tax escrows!

NY knows how to do one thing, and that is tax more, spend more. If they can milk Intel to lure AMD in, they will… and then they will milk AMD, all her Employees, and then the rest of the state to pay the “bond”, “debt”, or whatever else may present itself.

Lord knows, I want out, along with the rest of my family, but the noose is tight and I will take a huge loss leaving the state looking for that rainbow…..

This is being forwarded to “Dave”, who has an even tighter grip on the situation- listen to him – he was one of the survivors!




Post a comment



Display Name

Change Image
Before submitting this form, please type the characters displayed above.
Note the letters are NOT case sensitive.


ADVERTISEMENT

©1997-2009 Reed Business Information, a division of Reed Elsevier Inc. All rights reserved.
Use of this Web site is subject to its Terms of Use | Privacy Policy

Please visit these other Reed Business sites