AMD vs. Intel
The battle between AMD and Intel (INTC - Annual Report) is heating up. Just yesterday we learned that AMD has further encroached on Intel’s market dominance. Still, the stock was down on fears that Intel will get more aggressive on pricing. Then we hear that both firms have scheduled conferences later this month to strengthen their relationships with suppliers and customers.
Now we learn that AMD has poached 10 members of Intel’s Itanium team, which was developing RISC-based processors for high-end servers. According to Electronic News:
Itanium was born out of a joint development arrangement between Intel and HP that began in the more than a decade ago with a team that included some of Digital Equipment Corp.’s Alpha engineers. HP’s Fort Collins development facility became Intel’s Fort Collins facility when HP pulled out of the deal in December 2004.
The Fort Collins team has been working on Intel’s long awaited Montecito processor, the first dual core Itanium that has experienced several delays already. It is now scheduled to come out during the current quarter.
So let’s get this straight. HP inherited a bunch of guys that Compaq inherited from DEC. HP decided it didn’t really need them and gave them to Intel, where they have been working on a project for far longer than Intel intended. And AMD wants them… why?
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[…] Intel and AMD - The Aftermath Anybody who believes in efficient markets should take a look at the slow-motion reaction in Intel and AMD over the past few months to a fairly obvious chain of events. We started talking about the price war in April, and we were hardly the first to broach the subject. […]