To: combjelly who wrote (70080 ) 2/2/2002 12:16:16 AM From: dale_laroy Read Replies (3) | Respond to of 275872 >Back in the early mists of the industry< In truth, there was a lot of bad blood between AMD and Intel prior to the IBM PC. But when the 8088 was chosen as the processor for the IBM PC, IBM demanded a second source. Intel initially attempted to meet this requirement by providing Harris Semiconductors with the design specifications and a license so that Harris Semiconductors could design clones of x86 processors. IBM rejected this, demanding a legitimate second source, that could be an alternative supplier on short order, not years down the road. Thus Intel licensed NEC as a second source. Even this did not satisfy IBM, who demanded a domestic second source. Unfortunately for Intel, with the exception of TI, who had signed on as a second source for National Semiconductors, the only suitable domestic second source without their own processor or a license to produce the Motorola 68000 processor, was AMD. Thus Intel grudgingly granted AMD a license to produce clones of Intel processors using masks provided by Intel. In exchange, Intel gained access to AMD's trade secret stack based FPU architecture, which Intel subsequently patented as the x87 and denied AMD the right to produce. The trouble started almost from day one, as AMD produced a faster version of the 8088 than Intel's own. AMD increased their speed grade lead with an 8 MHz 80286 versus Intel's own 6 Mhz 80286. By the time Intel introduced the 386 and 14 and 16 Mhz, AMD was marketing 10 Mhz 80286 processors. Intel had had enough, and proclaimed that AMD had breached the licensing agreement by not meeting their obligation to produce support chips for the 80286. Actually, AMD had designed the support chips requested by Intel, but Intel rejected the chips designed by AMD, using their own in house designed support chips instead. However, the licensing agreement specified that the chips designed by AMD had to be approved by Intel to meet the licensing obligation. Thus did Intel justify their denial of the right to produce the 386 to AMD. It was not until Intel denied AMD the right to produce 386 processors that AMD decided they would settle for dominating the low end of the market. The courts actually ruled more or less in Intel's favor, stating that AMD did not meet their contractual obligations. However, they also ruled that Intel had dealt in bad faith by not accepting AMD's designs, and thus granted AMD the right to produce 386 and derivative processors.