Pacific Northwest Intel is ratcheting up the competition with smaller rival Advanced Micro Devices by teaming up to develop chip technology...

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Intel is ratcheting up the competition with smaller rival Advanced Micro Devices by teaming up to develop chip technology with Seattle supercomputer maker Cray, which for the past six years has used only AMD chips in its high-performance machines.

The multiyear deal that Intel announced Monday bolsters its server business and snaps an exclusive arrangement that kept its chips out of some of the world’s most powerful machines.

Cray computers with Intel chips aren’t expected until 2011 or 2012.

Microsoft

First licensing deal with Chinese firm

Microsoft agreed to license its wireless technology to a Chinese company for the first time, an effort to build stronger ties with the fastest-growing major economy.

Beijing Komoxo Mobile Software, which makes programs that help mobile-phone users send text messages in languages such as Hindi or Chinese, will use Microsoft’s technology to improve spell-checking capabilities and to more accurately complete text messages as they are typed on mobile phones, Microsoft said Monday.

Mars / Wrigley

Sweets deal has Buffett’s backing

With financing from Warren Buffett, candy maker Mars on Monday said it is buying confectioner Wm. Wrigley Jr. Co. for an estimated $23 billion in cash. The deal would marry brands that sweet-toothed Americans have munched on for decades: Mars owns Snickers and M&Ms; Wrigley’s gum brands include Juicy Fruit, Orbit, Extra and Big Red.

Buffett’s Berkshire Hathaway will purchase a $2.1 billion minority equity interest in the Wrigley subsidiary once the deal is completed.

If the buyout receives regulatory and shareholder approval, the combined companies would leapfrog over Britain’s Cadbury Schweppes as the world’s largest confection maker.

United Airlines

US Airways new possible partner

Moving quickly after being left at the altar by Continental Airlines, United Airlines stepped up talks with US Airways and was moving toward an agreement Monday on joining forces to create what could be the world’s largest carrier.

United and US Airways were in advanced talks and expected to be able to announce a deal within weeks, two people familiar with the negotiations told The Associated Press.

Representatives of both airlines declined to comment on what they called rumors about a deal, which drove up US Airway’s stock more than 20 percent and sent United’s down slightly.

While a deal is not assured, the pairing became likelier after Continental stunned United on Sunday by ruling out any combination as an option after in-depth talks that had been expected to result in one by week’s end.

Compiled from The Associated Press and Bloomberg News