Intel Warns AMD on Legal Terms about GlobalFoundries $4.2 Billion Project

Intel and AMD may well be breaking off permanently and never see each other again. Well, its hard to find an instant where two of the closest competitors help each other in technology sharing agreement. Take for example, Microsoft and Google. We all know about their sweet relationship. But AMD and Intel, unlike many others, used to work in certain projects together. However Intel may pull off from these projects within two months because of a rift that was initiated for GlobalFoundries Inc., the California company planning a $4.2 billion computer-chip factory in Malta.

As timesUnion is found quoting

Intel, the world’s No. 1 maker of chips for personal computers and servers, says AMD violated the agreement when it created GlobalFoundries through a joint venture funded by the Emirate of Abu Dhabi. Intel says the technology cannot be transferred to a third party.

AMD doesn’t see it that way, and argues that GlobalFoundries can use the technology because it is a subsidiary of AMD covered under the agreement.

Intel’s move comes just a few weeks before GlobalFoundries is expected to start clearing a 222-acre site at Luther Forest. An official groundbreaking could take place this summer. The factory is expected to reach full-scale production by 2012 with 1,465 employees.

GlobalFoundries spokesman Travis Bullard when asked if he was bothered by this tiff, said,

This doesn’t change anything for us. We see this as a diversionary tactic from Intel to distract from the global antitrust scrutiny they face. We remain on track to manufacture products for AMD and other future customers.

But there is still a sleek chance that under common resolution they will meet and talk things out. We also hope that way. Do chip in with your views. Because at the end of the day, we want the best of the both worlds and more precisely, cheap chips in chief condition. Okay, ciao.