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Intel's Truce with Nvidia Shows Industry's Shifts


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Intel Corp.'s decision to pay Nvidia Corp. $1.5 billion for the right to its patents highlights the seismic shifts the semiconductor industry is undergoing.

The licensing deal announced Monday comes as both companies are adapting to the new rules of the consumer electronics world, as mobile devices are changing the way chips are made.

Intel, dominant in PCs, wants in to smart phones and tablets, and needs better graphics technologies as high-definition video proliferates across the devices. Nvidia, a leader in graphics, wants to challenge Intel on its home turf: the processors that act as the "brains" of computers.

The rise of the new class of mobile computers has set Intel and Nvidia on a collision course, the results of which were on display in the terms of the settlement between the two companies.

From The Associated Press
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