AFTER POSTING YET another depressing quarterly loss, AMD has lashed out at rival Intel, saying Chipzilla is determined to undermine it with wicked whisperings sowing the seeds of "uncertainty" about AMD's fab spin-off.
The Amputation of AMD's fabs to create separate, stand-alone firm, The Foundry Company, is close to becoming a done deal, but AMD says Intel is doing its utmost to cause trouble, using the issue of an Intel/AMD agreement over licensing and patents.
The agreement states AMD is not allowed to transfer any Intel-licensed technologies to a third party and Intel reckons the creation of The Foundry Company could violate the agreement as the spin-off qualifies as a 'third-party' rather than a 'subsidiary' of AMD.
AMD will only own 44.4 per cent of the chip-making Foundry Company, with the oily sheiks from Abu Dhabi's Advance Technology Investment Company (ATIC), holding on to the rest.
Intel's Chuck Mulloy discussed the matter with the INQ a while back and told us that, "Some terms of the AMD/Intel cross-license are confidential, including certain important provisions that we are unable to discuss." However, he continued, "Intel has repeatedly asked AMD to agree to make the entire agreement public. AMD has refused."
As if picking a bone over DAAMIT FC wasn't enough, AMD is also indignant that Intel is now saying it would also like to review whether AMD's acquisition of ATI back in 2006 likewise amounts to a 'change of control', thereby also voiding the pact.
With a fourth quarter loss of $1.424 billion and an overall yearly loss of $3.098 billion in fiscal 2008, on revenue of $5.808 billion, AMD could certainly do without Intel picking at its pus-filled scabs. But Chip Kong is doing its utmost to appear nonchalant and deliver its own subtle digs at its rival. In a press and analyst phone call, CEO Dirk Meyer said AMD's licenses for Intel patents "are perpetual", although he did admit they would be up for renewal within the decade.
Meanwhile, the DAAMIT chief took a dig at its rival with the proclamation that Netbooks would eventually fizzle out and that soon-to-be-released, AMD-packing, ultra-thin notebooks would take their place.
With AMD swearing blue in the face it will make money this year, the firm had better hope Meyer's outlandish claim comes good. µ
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