Saturday, July 26, 2003 12:45:40 PM
While there may be a clause in AMD contracts with Intel to produce x86 technology, my general impression is that IBM has all the same rights to the technology as AMD. Recall that IBM used to produce Intel processors as a second source, and I remember them updating their license long after they stopped producing them. Thus I doubt if this is a blocking issue for (the speculated) concept of IBM buying out AMD.
Rather I don't think that IBM wants to own AMD because they already are promoting their own processor line, and they would not want to deal with the internal strife that would come with two major competing processor architectures.
However, IBM does not want to see Intel have a full monopoly in x86, nor see Intel in the position of dictating that the market move to Itanium, so it is in IBM's best self interest to cooperate with an independent AMD as a counter to the Intel-only alternative. Of course, AMD has to do their part with a valid design (K8 and K9), IBM certainly doesn't want another Cyrix fiasco. Thus technology exchange on 90nm and joint development of 65nm (with potential for joint manufacturing later) makes sense to me as the goal of their cooperation.
A buyout does not make sense, but not for x86 licensing reasons.
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