AMD accuses Intel of spin-off scaremongering
AMD has accused Intel of spreading “uncertainty” regarding its foundry spin-off plans, as it announced its ninth straight quarterly loss.
AMD’s chief executive Dirk Meyer took time out from the company’s earnings call to report that the chip company had received a letter from arch-rival Intel requesting a meeting to discuss whether its plans to create a new Foundry Company violated their cross-licensing pact.
The agreement allows the companies to make use of technology protected by rival patents so long as it’s not sold on to a third party. A clause the creation of the Foundry Company will violate, according to Intel.
Intel also wants to discuss AMD’s 2006 acquisition of ATI. It claims the acquisition qualifies as a “change of control” due to the boardroom reshuffle, and is also in violation of the pact.
However, AMD spokesman Drew Prairie dismissed the letter as “another attempt by our competitor to cause uncertainty” ahead of the shareholder’s approval meeting on 16 February.
The company broke the Intel news while announcing a net loss of $1.42 billion for the fourth quarter.
Revenue was down to $1.16 billion against $1.74 billion in the final quarter of 2007, with the company admitting first quarter 2009 results were likely to be even bleaker, though it declined to offer a forecast.
Disclaimer: Some pages on this site may include an affiliate link. This does not effect our editorial in any way.