not a single word about vega in that link.
I read English good and I don't see it either.
December 8, 2016 1:00 PM ET
Executives
Devinder Kumar - Senior Vice President, Chief Financial Officer and Treasurer
Analysts
Unidentified Company Representative
All right. I guess, we’ll get started here. First, welcome to everybody in the room. Thanks for joining us and those listening in online. I’m very pleased to host Devinder Kumar, Senior Vice President, CFO and Treasurer at Advanced Micro Devices.
So, I guess, we'll kick off the question we've been asking almost all the companies this week. Just broadly, what is the single most important development that you see driving your success in 2017?
Devinder Kumar
I think it’s a culmination of a lot of the stuff we’ve been looking on over the last couple of years, in particular, in 2014 and 2015, but 2016 has been a year of execution. We’ve executed lot of things in terms of joint venture partnerships. We've obviously brought to the fall, products that we’ve been looking on for a multiple number of years. We invested in software.
We've invested on a targeted basis in R&D and some of the things that we have done from a longer-term standpoint, including the multi-year WSA and then you've read in the press all of the news about the static JV in China, the ATMP JV that we did. And also most recently saying that Zen is on track and executing to stabilize the PC side of the business, but also a very healthy business from the customer side.
Unidentified Company Representative
Excellent. Just break it up, before we dig into some of the segments. Could you talk a little bit about that the joint venture with China, maybe if you could give a little bit of color of exactly what it is and how it's progressing from your view?
Devinder Kumar
Sure, I can do that. So that was announced in the Q1 timeframe. It is with the consortium in China, which the Chinese Academy of Sciences bought off called the static JV. It was an IP licensing arrangement on the technology bases, to the tune of $293 million. And we’ve said pretty publicly and also be on track to get half of that cash and the recognition on the P&L in the first two years, 2016 and 2017, well on track to do that with about $82 million we recognized this year and the remainder to be done in 2017.
It's really a licensing arrangement, we are re-uploading the technology to the consortium. They're going to take the technology and go and develop SoCs that are specifically targeted for the server market in China. And at some point allow the SOC, they ship the product. They go ahead and sell the product within the Chinese market and we get a royalty stream on that. It was a very unique way for us to take X86-based technology and have a technology arrangement with a very important player and a partner in China.
Unidentified Company Representative
How - I guess, how significant could you see that royalty stream being - when would you expect that sort of an impact?
Devinder Kumar
The technology has just been transferred right now. So, I would say, it's more in the 2018, 2019 timeframe that the SOC comes out and then something that’s specifically to the regional market in China, which is one of the biggest regional markets on the server space from a global standpoint.
Unidentified Company Representative
Okay. On the licensing front, I won’t put you on the spot about specific recent rumors but say at least there has been some talk that you might have a partnership with one of your largest competitors, rather than talking about that specifically, could you just talk about your appetite more broadly for other licensing partnerships and what type of willingness you’d have to do those?
Devinder Kumar
Yes, I think, we've talked about IP monetization in particular partnerships. So, AMD with the treasure full of IP that we have, we have 10,000 plus patterns, half of them are US-based. And we saw over the last two or three years that we can go ahead and partner with folks, where we don't want to directly enter market. We will be very careful in terms of who we partner with, where it doesn't come back and directly compete with us in areas that we want to go put products in, and very happy to do on a fair basis a deal with the partner to go ahead and monetize that IP, get cash, benefit the P&L and balance sheet in particular.