AMD Responds to WSJ ‘Keys to the Kingdom’ Story

My understanding of the structure of the arrangement when I first heard about it was that it was designed to not transfer IP, but to allow China to make their own chip, in a manner of speaking, without actually having the important IP. Even ignoring national obligations, it would just be bad business to hand that over.

"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."

That being said, I wouldn't be surprised if they got the IP anyway, just that wasn't the intention. AMD CEO Lisa Su made some comments a few weeks ago that the joint venture was already dead in the water and was just for one project only. I get the feeling AMD wasn't too happy about the way it all turned out.

They can claim whatever they want. But they have no proof, and there has been plenty of counter evidence.

I'm not being my answer on any laws, but am replying with the eye of an investor.

A story or rumour affecting the short term price of a company stock, might leave little recourse to the company, as that price can return back to what it was relatively quickly. There would have been some reputation damage, but I wouldn't weigh stock price to be a good measure of that.

If the company was maybe in the middle of raising funds, say bonds from the market, or using additional shares; they would have stronger case if the false story hindered such find raising.

A company is often not affected by short-term fluctuations in its external "value".

If in the other hand, there's an investor who was adversely affected by such news, the stock price directly affects them. Perhaps they would have a stronger case.

This is my opinion based on my intuition.

And it certainly hasn’t been proven false

Nothing super fancy

After their stock crashed there was a small window of time where the tech crowd had concluded the claim is bullshit but the stock didn't go back up.

Checked out their financials and that seemed fine so stuck money in it and waited for it to recover