Intel and AMD settle legal rows
submitted by markodonoghue on 12 November 2009
Giant US chip maker Intel have agreed to pay their rival chip makers AMD $1.25bn as a part of a deal to settle outstanding legal disputes between them.
"While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes," the two firms said.
AMD's shares actually jumped by as much as 23% following the announcement and Intel makes 80% of the microchips that power personal computers.
The deal means that the two firms have agreed a five-year cross licensing agreement, with each agreeing to give up claims of breaching previous agreements.
As a result of the settlement, Intel updated its fourth quarter financial forecasts. It now expects spending to be around $4.2bn, up from $2.9bn. Its effective tax rate will be down to 20% from 26%.
This battle between these two companies has been going on for some time now and I think everyone will be very glad to hear that its finally over.
Submitted by:
Mark O'Donoghue
Associated Links:
http://news.bbc.co.uk/1/hi/business/8357266.stm
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