ADVANCED MICRO DEVICES INC
8-K, 1996-01-12
SEMICONDUCTORS & RELATED DEVICES
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<PAGE>
 
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                    FORM 8-K

               Current Report Pursuant to Section 13 or 15(d) of
                      The Securities Exchange Act of 1934


                        Date of Report:  January 5, 1996


                           ADVANCED MICRO DEVICES, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


           DELAWARE                       1-7882                 94-1692300
- -------------------------------         -----------          ------------------
 (State or other jurisdiction           (Commission           (I.R.S. Employer
      of incorporation)                 File Number)         Identification No.)
 

      One AMD Place,
      P.O. Box 3453
      Sunnyvale, California                                      94088-3453
- -------------------------------                                  ----------
(address of principal executive offices)                         (Zip Code)



Registrant's telephone number,
  including area code:          (408) 732-2400


                                  Page 1 of 4
<PAGE>
 
Item 5.  Other Events.
- ------   ------------ 

     On January 5, 1996, Advanced Micro Devices, Inc. (the "Company") and Intel
Corporation ("Intel") announced that they had signed a five-year, comprehensive
patent cross-license agreement. The companies had agreed to negotiate the
license as a result of the settlement announced in January, 1995.

     The new agreement follows a patent cross-license arrangement between the
companies that expired at the end of 1995.  Effective January 1, 1996, the new
agreement gives the Company and Intel the rights to use each others' patents and
certain copyrights, exclusive of, microprocessor microcode copyrights.  The
Company agreed in the January, 1995, settlement agreement that it would not use
Intel microcode beyond the Intel 486(TM) processor code.

     The license is royalty-bearing for products that use certain technologies,
though specific financial terms were not disclosed.

     The Company believes that the agreement will provide it with full legal
rights to use all enabling Intel intellectual property necessary to continue
providing its customers with competitive products that are fully software
compatible with the Intel instruction set.

     Except for the historical information contained herein, certain of the
matters discussed in this report are forward looking statements that involve
risks and uncertainties, including such risks and uncertainties as are described
in registration statements, reports and other documents filed by the Company
from time to time with the Securities and Exchange Commission pursuant to the
Securities Act of 1933 and the Securities Exchange Act of 1934.  Specific
reference is made to the risks and uncertainties described in the Registration
Statement on Form 3-4 (Registration No. 33-64911) filed by the Company in
connection with its planned acquisition of NexGen, Inc., and, in particular, to
the risk factors entitled "Dependence on Microprocessor Revenues," "New Products
and Technological Change" and "Competition," and to the descriptions therein
concerning dominant market position of Intel.


Item 7.  Financial Statements and Exhibits.
- ------   --------------------------------- 

(c)  Exhibits:

     99        Press release dated January 5, 1996

                                       2
<PAGE>
 
                                   SIGNATURES
                                   ----------

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                          ADVANCED MICRO DEVICES, INC.
                                                 (Registrant)



Date:  January 12, 1996                   By: /s/ MARVIN D. BURKETT
                                              ----------------------------------
                                              Marvin D. Burkett
                                              Senior Vice President, Chief
                                              Financial and Administrative
                                              Officer and Treasurer

                                       3
 
 
<PAGE>
 
                                 Exhibit Index
                                 -------------
 
Exhibit Number       Exhibit
- --------------       -------
      99             Press release dated January 5, 1996
 
                                       4

<PAGE>
 
                 [LETTERHEAD OF ADVANCED MICRO DEVICES, INC.]



NEWS RELEASE 


                                      For further information:
                                      Chuck Mulloy, AMD
                                      (408) 749-5481
                                             or
                                      John Thompson, Intel
                                      (408) 765-1279


                 ADVANCED MICRO DEVICES AND INTEL SIGN PATENT
                            CROSS-LICENSE AGREEMENT


SUNNYVALE, CA ... January 5, 1996 ... Advanced Micro Devices (AMD) and Intel 
today announced that they have signed a five-year, comprehensive patent cross- 
license agreement. The companies had agreed to negotiate the license as a result
of a litigation settlement announced in January 1995.

The new agreement follows a patent cross-license arrangement between the 
companies that expired at the end of 1995. Effective January 1, 1996, the new 
pact gives AMD and Intel the rights to use each others' patents and certain 
copyrights, exclusive of microprocessor microcode copyrights. AMD agreed in the 
January 1995 settlement agreement that it would not use Intel microcode beyond 
the Intel 486(TM) processor code.

The cross-license is royalty-bearing for products that use certain technologies,
though specific financial terms were not disclosed.

"Licensing is one way of ensuring others respect our intellectual property,"
said Craig Barrett, Intel's chief operating officer. "It also allows us to
provide our shareholders with a continuing return on the massive investments we
make on their behalf."



                                    More...


<PAGE>
 
"This agreement ensures that AMD has legal rights to all the enabling Intel 
intellectual property necessary to continue providing our customers with 
competitive products that are fully software compatible with the Intel 
instruction set," said W.J. Sanders III, chairman and chief executive officer of
AMD.

Focusing on the personal and networked computing and communications markets, 
Advanced Micro Devices, Inc., produces microprocessors and related peripherals, 
flash memories, programmable logic devices, and circuits for telecommunications 
and networking applications. Founded in 1969, AMD reported 1994 revenues of $2.1
billion. With headquarters in Sunnyvale, California, AMD has sales offices 
worldwide and manufacturing facilities in Sunnyvale; Austin, Texas; Bangkok, 
Thailand; Penang, Malaysia; Singapore and Aizu-Wakamatsu, Japan.

Intel, the world's largest chip maker, is also a leading manufacturer of 
personal computer, networking and communications products.



                                      ###



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