John - Re:"AMD and they both signed cross licensing agreements that either of them could manufacture what the other designed..."
The total story is that Intel and AMD agreed to exchange devices of like complexity, designed by Intel and AMD, starting with the 80286.
AMD committed to designing a quad pixel processor for graphics displays. This was started in 1982.
From an ex-AMD employee, I learned that by 1989 AMD had given up on the quad pixel processor - they could never get it to work right, and they had not been able to obtain any customer design wins for it. Meanwhile, 7 years had transpired.
Intel realized by 1987 that they were not getting any product designed by AMD and that, if Intel delivered the 80386 to AMD, it would be for free - for absolutely no value returned to Intel by AMD.
Intel considered this a breach of contract, and delayed providing AMD with 80386 designs.
From Intel's standpoint, AMD would be receiving FOR FREE all intellectual value for the 80386 - design, patents, etc., all market development, promotion, customer sockets, etc.
In effect, Intel would have rewarded AMD with the keys to the 80386 kingdom for its (AMD's) incompotence (in not being able to create a valuable design to give to Intel) if Intel had carried out their part of the contractual arrangement. AMD would have access to the fruits of Intel's hard work and success, and would return nothing to Intel.
Paul |
