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ATI Technologies has reportedly cancelled release of several new chipsets for Intel Corp.’s microprocessors scheduled for the second half of 2007 release. The reasons for cancellation are unknown, but they may be associated with necessity to ink a cross-licensing deal to obtain a permission to develop and sell chipsets for future Intel Quad Pumped Bus incarnation.

Reports from Taiwan-based media suggest that ATI has cancelled release of code-named RD700, RS700 and RC710 core-logic products for platforms supporting processors from Intel Corp. It is claimed that the chips were to be made using 65nm process technology at foundries of Taiwan Semiconductor Manufacturing Corp. (TSMC) and United Microelectronics Corp. (UMC).

While there are no motives for cancellation indicated, several possible reasons may be associated with the fact that ATI will be a part of Advanced Micro Devices by the second half of 2007. Given that Intel Corp. usually asks for a separate license for every new speed-bin of its microprocessor system bus, AMD may not want to strike a cross-licensing deal with the chip giant. Another reason could be very unfavourable terms of license and absence of any support for the chipsets in terms of market penetration.

ATI, AMD and Intel did not comment on the news-story.

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