Intel suffers the pay'n
Intel will take the $1.25 billion hit in the fourth quarter, paying AMD in cash within 30 days, and the firm says it now expects its spending in Q4 to be $4.2 billion, up from $2.9 billion. Intel did, however, maintain its previous forecast for the quarter, except to note that its tax rate would be 20 per cent, down from 26 per cent.
As for the new case being leveled at Intel by the state of New York's Attorney general, Otellini said Intel strongly disagrees with Cuomo's case, declaring "we believe it is entirely without merit." He added that he found it "unfortunate that the New York Attorney General distorted the facts."
Otellini maintains that certain emails reproduced in the filing, namely between himself and Michael Dell - where the Intel CEO expresses displeasure bordering on wrath at any idea of a Dell AMD partnership - were "taken broadly out of context."
Following the joint announcement, AMD shares shot up by 25 per cent to $6.61 while Intel shares were up by almost one per cent to $20.05, as of 10:00 AM EST.
Glofo glowing over verdict
GlobalFoundries, the AMD fab spin-off at the root of the cross license dispute, seemed delighted the deal had gone through, with the company's CEO, Doug Grose, noting "We're very pleased to see AMD and Intel reach settlement on this matter. We're also pleased that this resolution allows GlobalFoundries to continue making products for AMD while aggressively pursuing new foundry customers."
The agreement allows Globalfoundries, AMD's spin-off of its manufacturing unit, to proceed as an independent company, without being an AMD subsidiary. The patent cross license also allows AMD to use multiple foundries.
