Earlier this month, several technology specialized newspapers and web sites reported that ATI signed a deal with Intel and the graphics developer had to produce several chipsets for Intel's microprocessors which were scheduled for release in 2007.


Today, we found out from the Taiwan based media that ATI refused to manufacture the chipsets, but the sources didn't mention the reason for this sudden decision. "ATI has cancelled release of code-named RD700, RS700 and RC710 core-logic products for platforms supporting processors from Intel Corp. It is claimed that the chips were to be made using 65nm process technology at foundries of Taiwan Semiconductor Manufacturing Corp. (TSMC) and United Microelectronics Corp. (UMC)" writes X-bit Labs.

Even if the reasons haven't been disclosed up until now, the ATI-AMD merger might be to blame for the unclosed deal. Moreover, as ATI will be part of AMD by the end of 2007, and because Intel requests a separate license for every new speed-bin of its microprocessor system bus, AMD, the latter's challenger, might not want to close a deal with its adversary.

The three companies did not comment on the story until now.