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Computer industry

Technology and Business Partnerships Expand Across Industries

Strategic Insights

— 1 min read

In a strategic move, Advanced Micro Devices Inc. (AMD) extended its research agreement with IBM Corp. for another three years, solidifying their partnership in advanced chip research. This extension will provide AMD with access to IBM's cutting-edge technology research for the next four years, at a cost of between $250 million and $280 million. The agreement also covers the extension of certain technology milestones, originally set to expire at the end of 2005. This partnership allows both companies to accelerate technology advancements while sharing costs, with AMD paying an additional $11 million to IBM for access to a chip interconnect technology.

Key Takeaways:

  • AMD and IBM extended their research agreement for three more years, until 2009, at a cost of between $250 million and $280 million.
  • The partnership allows both companies to develop technology for making chips with critical dimensions as small as 32 nanometers.
  • AMD paid an additional $11 million to IBM for access to a chip interconnect technology developed by IBM.
  • The agreement originally expired at the end of 2005, but has been extended due to its success.
  • Mercury Research analyst Dean McCarron notes that the agreement is working well and has been extended further.
  • The collaboration focuses on pushing the boundaries of chip technology, with advancements in reducing chip dimensions.
  • This partnership is a significant step in the development of next-generation chips.

Statistics:

  • AMD will pay $250 million to $280 million for access to IBM's advanced chip research over the next four years.
  • The partnership has been extended for an additional three years, until 2009.
  • The agreement covers research on chips with critical dimensions as small as 32 nanometers.
  • AMD paid $11 million to IBM for access to a chip interconnect technology.

Sources:

  • "AMD to Pay $250 million to $280 Million for Planned IBM Deal," Reuters (no date)
  • Mercury Research (no exact source mentioned, analyst Dean McCarron cited)

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