Thread,
I can't remember who I argued this point with...but the contracts AMD signed for long term committments to flash guarantee nothing. We can expect more of the same from other flash costumers.
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AMD sues Alcatel for breach of flash memory contract
SUNNYVALE, Calif., April 3 (Reuters) - Microprocessor manufacturer Advanced Micro Devices Inc. <AMD.N> said on Tuesday that it had filed a lawsuit against Alcatel, alleging that the French telco firm Alcatel backed out on buying flash memory chips from AMD under a contract signed in 2000.
"After several months of negotiation, AMD reluctantly took the step of filing a lawsuit as a last recourse after Alcatel refused to honor its commitments under an agreement that heretofore was hugely beneficial to Alcatel," said Walid Maghribi, head of AMD's memory group in a statement.
"AMD met all of its obligations to Alcatel, passing up opportunities to sell its products to other customers at prices significantly higher than those provided for in the agreement," Maghribi said."
A spokesperson for Alcatel wasn't immediately available to comment.
The suit was filed in the Supreme Court of the State of New York and pertains to two-year agreement signed by Sunnyvale, Calif.-based Alcatel <CGEP.PA> and AMD, calling for AMD to supply Alcatel with flash memory chips, widely used in cell phones and computer-networking gear.
In addition to making microprocessors, the brains of personal computers, AMD is also a diversified semiconductor maker and is one of the largest makers of flash memory. AMD had 2000 sales of $4.6 billion.
18:57 04-03-01
Copyright 2001 Reuters Limited. |
