ATI loses bus license from Intel

Posted by Wolfgang Gruener

Following the rumors about a possible merger between AMD an ATI, Intel apparently pulled ATI's bus license. According to a brief article posted by the Inquirer just before the AMD/ATI news was announced, Intel may take taken this action already a few days ago.

In a conference call earlier today, AMD said that it would expect Intel to stop ordering ATI chipsets for its entry-level motherboards sometime in the future, but expressed hope that customers would continue to ask for ATI chipsets on Intel boards and force Intel into buying chips from its new rival.

Mercury Research recently reported that ATI had built 4.3 million Intel chipsets during the first quarter of this year. Intel has been ATI's single most important chipset suppliers over the past quarters, but Intel never made a secret out of it plans to reduce the chipset supplies from ATI: While converting factories from a 130nm to 90nm chipset production, Intel used ATI to fill in the gap on the lower-end. Intel currently ramps its 90nm chipset production and it is expected that ATI's shipments will substantially decrease over the next few months.

AMD believes that the acquisition of ATI will be completed sometime in the fourth quarter of this year.