Intel & AMD: Things Get Uglier

Posted by: Stephen Wildstrom on March 16, 2009

The squabble over AMD spinning off its chip manufacturing business has gotten nastier with Intel’s threat to revoke agreements that allow Intel and AMD to use each others key technologies.

AMD revealed in an 8-K filed with the Securities & Exchange Commission today that it has been notified by Intel that the creation of Globalfoundries, the new manufacturing entity, constitutes a “material breach” of a 2001 patent cross licensing deal. Intel is threatening to terminate AMD’s rights under the license in 60 days.

But don’t expect anything to happen that fast—this is, after all, a patent dispute. And, as AMD says in its filing, “the Company has informed Intel that the Company maintains that Intel’s purported attempt to terminate the Company’s rights and licenses under the Cross License itself constitutes a material breach of the Cross License by Intel which gives the Company the right to terminate Intel’s rights and licenses under the Cross License Agreement while retaining the Company’s rights and licenses under the Cross License Agreement.” Translation: So’s your old man. This one could go on for a while.

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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