Intel rival files suit alleging customer coercion

Microprocessor giant Intel’s biggest rival Advanced Micro Devices (AMD) has taken legal action alleging the chip manufacturer…

Microprocessor giant Intel’s biggest rival Advanced Micro Devices (AMD) has taken legal action alleging the chip manufacturer has an unlawful monopoly of the market.

Intel, which employs 3,600 people at its facility in Leixlip, Co Kildare has been accused of using its market position to prevent its customers changing to AMD.

AMD said it filed suit in the US Federal District Court in Delaware under antitrust laws.

Intel recently secured a major contract with Apple computers to supply microprocessors for Apple’s new generation of Macintoshes.

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AMD issued a statement this morning accusing Intel of maintaining a monopoly in the x86 microprocessor market "by engaging in worldwide coercion of customers".

It identifies 38 companies it claims have been that have been "victims" of Intel tactics - including large scale computer-makers, small system-builders, wholesale distributors, and retailers.

"Everywhere in the world, customers deserve freedom of choice and the benefits of innovation - and these are being stolen away in the microprocessor market," said Hector Ruiz, AMD president.

x86 microprocessors run many of the leading software in the market such as Microsoft Windows, Solaris and Linux families of operating systems.

And Apple recently ended its relationship with IBM to controversially contract Intel to supply microprocessors for its new generation of Macintoshes.

Intel's share of the microchip market counts for about 80 per cent of worldwide sales by unit volume and 90 per cent by revenue, AMD claims.