IBM and Intel to Sign Accord

<i> Associated Press</i>

IBM and Intel Corp. will announce a technology-sharing agreement today designed to maintain the key role of Intel’s microprocessors in the personal computer market, an industry source said Wednesday.

The pact should put Intel on a more even footing in light of International Business Machines Corp.'s alliance with Apple Computer Inc.

Under the IBM-Intel agreement, IBM will gain the right to make Intel’s most-advanced microprocessor, the 486, for use in IBM products, said the source, who spoke on condition of anonymity.

More significantly, IBM and Intel will jointly establish a research and development center to improve the 486 chips.


Both companies will have the right to make these improved chips, but only Intel will be allowed to sell them on the open market. However, IBM will be given lead time for their use in its products before Intel may sell them to competitors.