Summary
Altera already has a comparable processor in Nios II. This deal is likely a resolution to a threatened patent dispute.
Analysis
Altera's Nios II offers a software ecosystem comparable to that of MIPS. Nios II, optimized from conception for FPGAs, offers better performance in FPGA chips than MIPS.
MIPS, as a distant second to ARM in the processor IP licensing business, feels pressure from shareholder to demonstrate an aggressive effort to maximize revenue from their patent portfolio. MIPS has filed lawsuits against both competitors and customers for using MIPS-like processor designs without taking a license from MIPS.
As a growing company with deep pockets, MIPS likely viewed Altera as a potential goldmine and threatened a patent lawsuit. Rather than risk money and bad press litigating, the companies probably reached a settlement agreement. That would explain the non-specific press release from MIPS and no press release from Altera.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
