Advanced Micro Devices Inc, Sunnyvale, California and C-Cube Microsystems Inc have signed a cross-licence and co-operation agreement that will combine Advanced Micro’s product and manufacturing technology with C-Cube’s leadership in digital compression technology. Under the agreement, the chipmaker will design, manufacture and market integrated circuits that combine C-Cube’s MPEG, JPEG and Px64 compression technology with existing Advanced Micro cores such as microprocessors, microcontrollers and networking circuits for multimedia applications in personal computers, networking systems and consumer electronic products. The cores in question presumably include Advanced Micro’s Am386 parts. C-Cube will be licensed, in turn, to use some Advanced Micro intellectual property to create products derived from AMD parts, and get access to AMD’s internal and external foundries; it will be sealed by Advanced Micro buying an undisclosed equity holding in C-Cube.