Intel and AMD, the world's top leading processor manufacturers, are, once again, at each other's necks as the former recently accused the latter of breaching the terms of a cross-licensing agreement between the two rival companies. In return, Sunnyvale, California-based AMD denied Intel's allegations on Monday, consequently allowing for a new battle between them. Intel's allegations are closely related to AMD's recent factory spin-off, which the former claims is not subject to the terms of the agreement signed by the two companies in 2001.
In a recent statement, Intel said that it “believes that Global Foundries is not a subsidiary under terms of the agreement and is therefore not licensed under the 2001 patent cross-license agreement.” The Santa Clara, California-based chip maker is threatening its rival with the termination of the agreement and AMD's rights, if the breach is not corrected. As further proof of its intentions of taking AMD down, the company said that the termination of the agreement would occur in 60 days if a proper solution wasn't found.
In return, in a filing with the U.S. Securities and Exchange Commission AMD said that it had not breached the agreement therefore Intel had no right to terminate the rights and licenses covered by the contract. The chip maker asserts that, in fact, Intel was the one that did all the breaching by attempting to terminate AMD's rights and licenses under the Cross License agreement. This statement enables Advanced Micro Devices to protect itself by terminating Intel's rights and licenses.
The most recent argument between the two companies surfaced after AMD announced that it planned to remain a fab-less chip company, concentrating more on designing chips rather than producing them. The decision led to the creation of a new company, a joint venture with Advanced Technology Investment Co (ATIC), an Abu Dhabi state-owned venture capital firm.
The rivalry between the two companies goes a long way back, with Intel on trial, being accused of having offered discounts to computer makers that weren't building on AMD platforms. In a more recent turn of events, Intel is currently battling with NVIDIA over a licensing agreement between them.