Intel Threatens AMD's Chip-Making License

At the heart of the x86 licensing dispute is whether AMD's chip-manufacturing spin-off, GlobalFoundries, is a separate company or a subsidiary.
In the SEC filing, AMD says that Intel is claiming that AMD violated the licensing agreement "through the creation" of GlobalFoundries. Intel denies that's the case. In addition, AMD accuses Intel of failing to follow the proper procedure for handling disputes and is therefore also in violation of the agreement. Intel also denies that allegation.

AMD wasn't immediately available for an interview, but in a statement the company said, "Intel's action is an attempt to distract the world from the global antitrust scrutiny it faces."

"Should this matter proceed to litigation, we will prove that Intel fabricated this claim to interfere with our commercial relationships and thus has violated the cross-license," the company said.

AMD sued Intel back in 2005, accusing the latter company of anti-competitive behavior that violates antitrust laws. The suit is pending.

Intel first notified AMD of the licensing problems in October and said it's still willing to talk to its smaller rival to settle the dispute. AMD's position on future talks isn't clear. No lawsuits have been filed yet.

In the meantime, GlobalFoundries officially opened for business this month. The company has announced plans to expand manufacturing capacity at its facility in Dresden, Germany, by then end of the year, and to begin construction this year on a second fabrication plant in Saratoga County, N.Y.

The $4.3 billion GlobalFoundries employs 3,000 people worldwide and is based in Silicon Valley, Calif.

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