Advanced Micro wins a round in Intel feud
Article Abstract:
A court arbitrator awards Advanced Micro Devices (AMD) Inc $15.3 million in damages and rights to all the technology encompassing its Intel 80386 clone microprocessors, bringing to conclusion a court battle between Intel Corp and AMD that began in 1987. AMD had sued Intel for reneging on a 1976 agreement to provide the former with rights to make the 386 chips. The amount awarded falls short of the $2.3 billion AMD had asked for, but the victory helps to ease AMD customers' concerns over legal problems which would hinder the use of AMD clones. AMD hopes the win will provide it with added leverage in another antitrust suit against Intel that will go to court in Mar 1992. Since introducing its clones, AMD has managed to break into the $3.3 billion microprocessor market dominated by Intel. In 4th qtr 1991, AMD captured 30 percent of the 386 market. Although many Asian and US computer vendors are using AMD clones, others have shunned the clones because of potential legal problems.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Intel and AMD found at fault in chip dispute
Article Abstract:
Intel Corp and Advanced Micro Devices Inc (AMD) battle over the rights to Intel's 80386 microprocessor chip. Arbitrator J. Barton Phelps rules that both companies are at fault over the breakup of a 1982 agreement that gives AMD the right to manufacture 80386 microprocessor chips. Intel is guilty of adopting a policy to frustrate the contract's operations and poison the relationship under which the two rival semiconductor companies swap chip technology. Phelps called Intel's actions a 'classic example of breach of covenant of good faith and fair dealing, preaching good faith but practicing duplicity.' AMD is guilty of not producing several microprocessor chips that it was supposed to and produced others that were unsatisfactory. The ruling did not answer whether or not AMD will be able to produce an 80386 clone.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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