Long term Intel Corp agitator Cyrix Corp may be able to break Intel’s monopoly on the Pentium II architecture after it confirmed that it has its hands on the rights to the plans and other intellectual property necessary to produce chips based on the studiously protected Pentium II design. Cyrix made the announcement following its acquisition by National Semiconductor Corp last week. National has a cross-licensing agreement with Intel which was transferred to Cyrix on completion of the merger, which also made Cyrix a wholly owned subsidiary of National Semiconductor as each outstanding share of Cyrix common stock became exchangeable for 0.825 shares of National Semiconductor common stock. Upon closure of the deal Cyrix senior vice- president and co-general manager, Kevin McDonough, commented that the transaction was vital to the future growth of Cyrix in the microprocessor marketplace. Now it appears part of that growth could be a move to challenge Intel’s dominance in the high-end desktop marketplace, although it is not thought Cyrix will be in a position to do so with its own Pentium II-style chips until late 1998. The Pentium II design is incompatible with older design chips currently made by Cyrix, which says it has checked out the legal implications of National’s cross-license with Intel and is sure its position is safe. However, it looks as though success will be dependent on Cyrix’s patents becoming part of National’s portfolio, and Cyrix giving Intel its own intellectual property rights as part of the cross-license. Intel’s only response has been to acknowledge the cross-license deal with NatSemi.
