Chipmaking giant Intel isn’t happy about AMD’s recent decision to spin off its fabrication business as a separate company. Initially the move by AMD seemed to be a rather good decision in terms of finance and growth; but now Intel are kicking up and saying that they have "serious" questions regarding AMD’s strategy.

The problems centre around a licence agreement that AMD has with Intel in which AMD pays Intel royalties for something called a "patent cross-licensing agreement"> This agreement allows AMD to produce x86 chips, which Intel holds the patent for. AMD intends to open up its fabrication plant to other companies beside itself – Therefore Intel claims that AMD is violating this agreement. Intel is nevertheless intent on protecting its intellectual property rights.

Intel have asked AMD to make details of the agreement public; something that AMD haven’t done: Therefore Intel’s representatives aren’t yet fully able to discuss the full details of the gripe that they have with AMD, so further details aren’t exactly forthcoming and are sketchy at best.

Following AMD’s announcement that it’s creating the Foundry Company, IBM have seen opportunity there and have jumped at the chance to embrace the move; in which AMD intend to share their existing and future fabrication facilities with other companies.

The plot thickens and the argument continues pending further developments.

What’s your view of this malarkey? Do you agree that Intel have a good case and should stand up against AMD to defend their patent? Do you think that Intel should be more flexible and allow AMD to pursue their objective as an act of good faith? Give your opinion in the appropriate comment space below.