Intel Rival Is Set Back By Ruling
A Federal judge today handed Advanced Micro Devices Inc. a significant setback, ruling that the Silicon Valley chip maker does not have the right to copy software embedded in the Intel Corporation's 486 microprocessor. Advanced Micro was scheduled to begin shipping this month its own version of the 486 chip -- now the processor of choice in most desktop machines. The company has recently been demonstrating computers based on its chip. Gaining Market Share The decision by Federal District Judge William A. Ingram also strengthens Intel's position in attempting to stop Advanced Micro from selling a compatible version of its 386 chip. Advanced Micro has been the most successful of a number of chip makers who have designed clones of the Intel microprocessors, taking market share away from Intel in the 386 business. In 1991 Advanced Micro shipped about 2 million 386 chips compared with 15.4 million for Intel, but Advanced Micro's sales are expected to triple this year, said Dan Hutcheson, president of VLSI Research Inc., a San Jose, Calif. market research firm.