Chief executive officer of Globalfoundries, semiconductor manufacturing joint-venture between Advanced Micro Devices and Advanced Technology Investment Company, welcomed the agreement between Intel Corp. and AMD, under which the two companies signed a cross-licensing deal as well as agreed on numerous other factors. As a result of the new pact, Intel no longer has questions whether Globalfoundries can produce x86 chips.

“We are very pleased to see AMD and Intel reach settlement on this matter.  We are also pleased that this resolution allows Globalfoundries to continue making products for AMD while aggressively pursuing new foundry customers. Globalfoundries remains focused on executing on our growth strategies including our planned integration with Chartered, following the successful closing of ATIC’s acquisition of the company,” said Doug Grose, chief executive officer of Globalfoundries.

Earlier this year Intel questioned whether Globalfoundries can produce x86 microprocessors provided that AMD controls about 34% of the company. Under the terms of the cross-license agreement signed by the two chipmakers back in 2001, AMD can only produce certain portion of its chips at third-party foundries or it can produce central processing units at its own manufacturing subsidiaries. However, under the terms of the agreement signed in November 2009, AMD can produce x86 chips on fabs that are not its subsidiaries.

After ATIC merges operations of recently acquired Chartered Semiconductor Manufacturing and Globalfoundries, AMD will become a minor shareholder in the new business entity. As a result, under the terms of the old agreement, AMD would not be able to produce chips at Globalfoundries.

Tags: Globalfoundries, AMD, Intel, Chartered, ATIC, Mubadala, Semiconductor, Business