AMD Receives Federal Subpoena

SAN FRANCISCO, Nov. 30 (AP) — Advanced Micro Devices said late Thursday that it had received a subpoena from the Justice Department regarding an investigation into possible antitrust violations in the graphics processor and card business.

A.M.D., based in Sunnyvale, Calif., is a leading maker of microprocessors that act as the calculating engines of personal computers. It entered the graphics chip market this summer, agreeing to acquire ATI Technologies for $5.4 billion.

That move was seen as a strategic blow to Intel, A.M.D.’s much larger rival, and one that would allow A.M.D. to broaden its product portfolio in a continuing attempt to banish an image as a small competitor that sold microprocessors and flash memory chips. The deal was completed in October.

A.M.D. said that the Justice Department had not made any specific accusations against it or ATI, and that it intended to cooperate with the investigation. A spokesman declined to comment further.

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Funny, considering:
a) The Justice Department has far more important things to investigate, such as... Iraq? Republicans? Corruption?
b) Intel has been putting graphics chips with some of their processors for a while now. Since when is it considered antitrust for a SMALLER chipmaker to buy a graphics company to do the same thing that the larger chipmaker is doing already?