In the lawsuit filed by AMD, the company claimed that Intel engaged in unfair competition by offering rebates to Japanese PC manufacturers who agreed to eliminate or limit purchases of microprocessors made by AMD or a smaller manufacturer, Transmeta.
Intel, which faces growing government scrutiny for alleged anticompetitive practices, and AMD make nearly all the chips used in computers and servers, though the former controls approximately 80 percent of the market.
The agreement also includes a renewed five-year cross-license agreement and is a victory for both AMD, which is struggling from the losses and dept of its graphics chip-maker ATI Technologies and Intel, which may have alleviated some of the pressure regarding other cases brought against the chip giant.
Shares of both companies jumped at the news, with AMD rising 26% to a new 52-week high of $6.73 and Intel gaining 0.7% to $19.98.
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