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DOJ Subpoenas go to AMD, Nvidia: Anti-Trust Violations Eyed

December 3, 2006

The U.S. Department of Justice has issued antitrust subpoenas to chip-maker Advanced Micro Devices as well as to Nvidia Corp.

The purpose is to investigate potential antitrust vulnerabilities for each chipmaker's  graphics-processing products and services.

Understandably, DOJ is not saying what exactly it is that they have in mind, but Gartner Inc. analyst Richard Gordon tells the IDG News Service's Nancy Gohring that price fixing could be an area of focus. As the DOJ has already charged some specialiized DRAM chip companies with antitrust fiolations and is thought to be investigating some SRAM (Static RAM) companies, this investigation wouldn't necessarily be out of character.

"If the DOJ wanted to, it could just go down every line in the semiconductor industry and find the same issue," said Gartner Inc. Gordon explains to Gohring. That's because there are a relatively few number of suppliers in the chip industry and an open flow of communication between competitors and customers, who may not define price fixing the same way the DOJ does, he said.




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