Intel Licenses Its P6 Chipset Technology

In a move that inches closer to open licensing for its flagship Pentium II--and could help to mollify Federal Trade Commission antitrust investigators--Intel Corp. said it has licensed chipset technology associated with the microprocessor. Chipsets control a PC’s memory chips and communications pathways, among other functions.

A number of companies have previously gained access to the technology to create products based on the “P6 bus”--the processors, connectors and chipsets associated with the Pentium II--through cross-licensing deals with Intel.

“But this is the first time we’ve licensed [the P6 chipset] to a supplier in the open chipset market,” Intel spokesman Chuck Mulloy said Wednesday. Mulloy declined to name the new licensee.

“This certainly is a step that the FTC could look favorably upon,” said Nathan Brookwood, an analyst with Dataquest.

By licensing another company to build and sell P6 chipsets, a key technology standard, Intel is enabling a broader choice of component suppliers for PC manufacturers. This addresses a principal FTC concern about Santa Clara-based Intel’s business practices.

But if Intel were to open the floodgates and allow broad licensing of the entire P6 technology, it would effectively cement P6 as the preeminent microprocessor standard, Brookwood said. That might be viewed favorably by FTC regulators but could create a conflict for a chief Intel competitor, Advanced Micro Devices Inc. Frozen out of P6, AMD has already geared up to create a new generation of chips based on competing technology.

“At this point, changing to P6 for AMD would become a scheduling setback. It would be a very tough decision,” Brookwood said.

Intel shares lost $2.56 to $77 in Nasdaq trading.