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AMD & IBM Extend Technology Pact

AMD and IBM will work together to devise chip-manufacturing technology for three additional years, a deal that will bring about a quarter of a billion to IBM over four years and give AMD access to cutting-edge chip inventions. In December 2002, the two companies entered into a pact to develop technology for manufacturing microprocessors. That deal was slated to wind down at the end of 2005, but it will now last through December 2008. Between September 2004 and December 2008, AMD will likely pay IBM between $ 250 million and $ 280 million under the agreement. AMD derived early benefit from the deal when IBM helped unwind problems AMD was having putting silicon-on-insulator into its chips. The help cost AMD several million, however. Additionally, the agreement allows AMD to use third-party foundries to make any of its 90-nanometer chips, which just came out, or 65-nanometer chips, due in 2006 or 2007, that rely on IBM’s technology.

AMD and IBM will work together to devise chip-manufacturing technology for three additional years, a deal that will bring about a quarter of a billion to IBM over four years and give AMD access to cutting-edge chip inventions. In December 2002, the two companies entered into a pact to develop technology for manufacturing microprocessors. That deal was slated to wind down at the end of 2005, but it will now last through December 2008. Between September 2004 and December 2008, AMD will likely pay IBM between $ 250 million and $ 280 million under the agreement. AMD derived early benefit from the deal when IBM helped unwind problems AMD was having putting silicon-on-insulator into its chips. The help cost AMD several million, however. Additionally, the agreement allows AMD to use third-party foundries to make any of its 90-nanometer chips, which just came out, or 65-nanometer chips, due in 2006 or 2007, that rely on IBM’s technology.

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