Advanced Micro Devices Inc (AMD)

[Elmer Phud]

Sgolds - 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.

I'm going by memory but I believe IBM let their license lapse when they thought PPC was going to take over the world. Previously they had been licensing each x86 generation one at a time. Now, their process is very different from Intel's and it would be very difficult if not impossible to do a conversion. As for AMD outsourcing to IBM, IIRC there is a limit to the % of their processors AMD can outsource.

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.

I agree but as I said above, x86 licensing agreements with Intel may restrict the volume IBM can contribute.