Intel lost the case and was fined 14 1 100 million yuan. What did Intel do wrong?

Intel, the world's largest CPU manufacturer, recently encountered a big trouble. Received a huge infringement ticket, worth nearly $2.3 billion, roughly equivalent to RMB 1, 4 1 billion. This is the largest patent in history, and the amount of infringement compensation is equivalent to half of Intel's profit in the fourth quarter of 2020 and110 of its annual profit. The object of the infringed patent is actually a little-known American VLSI company, which was established only four years ago.

On March 2, 20021,the largest patent infringement case in history ended in Waco, a city in central Texas, USA. The jury unanimously found that Intel infringed two VLSI patents, 1 patent was fined150,000 USD, and the other patent was fined 675 million USD. These two technologies are related to the core improvement of operating system, the clock speed of electronic equipment, the voltage technology of minimum memory manipulation and the scaling of voltage memory. In other words, these two patents are directly related to the speed and accuracy of the processor, so they are very valuable. VLSI's attorney said that Intel turned a blind eye to VLSI's patents and intentionally infringed them, which led to the current situation.

After receiving this judgment, Intel executives were very dissatisfied and resolutely appealed because the so-called VLSI company that sued them was actually a zombie company. So far, no products have come out. Most of the products they use are products of NXP Semiconductors, a Dutch chip manufacturer. The sky-high compensation will naturally be shared by this Dutch company. The fact that Intel is now in such a big trouble is closely related to the decline of its R&D capability.

In the four quarters of 2020, Intel's profits gradually decreased and the recession was obvious. Its two main competitors, TSMC and Samsung, tend to surpass it. In July, 2020, Intel announced that they had encountered obstacles in the production of 7-nanometer process chips, saying that the production would not be completed until 2022, which directly led to its stock price plummeting 16%. Intel's inventory is also facing a shortage problem, and its biggest competitor AMD took the opportunity to seize Intel's original market. The latest rising arm technology tends to replace Intel technology. Nowadays, most of the smart phones used by ordinary people are chips with arm technology, and Intel's chip technology has fallen behind. Even Apple, an old customer of Intel, is disloyal to the next generation of MAC computer chips, considering that they will no longer use Intel chips.