Intel In Trouble: Processing Chip Company Facing Legal and Financial Woes

The processing chip war is already taking its toll on Intel. Recent reports suggest that not only is Advance Micro Devices (AMD) laying down a heavy antitrust lawsuit against Intel in Germany, but the latter is also slashing 1,000 management positions worldwide in order to remain competitive.

Infopackets recently reported on the clearance of current generation processing chips by both Intel and AMD, and the price is evidently proving costly for Intel. The battle between AMD and Intel is most ferocious abroad, where AMD plans on officially complaining to German authorities that Intel made attempts to stop certain retailers from selling PCs built around its rival's processors.

When discussing the allegations with the press, AMD claimed that it possessed written evidence of the infraction by Intel. In response, Intel has simply stated that their practices are fair and that such competitive actions are not violations of the law.

However, insiders report that another company, thus far unnamed, is also making similar allegations against Intel. (Source: reghardware.co.uk)

Financially, the tactics don't seem to be working. Citing slow and inefficient decision making, Chief Executive Paul Olletini told Intel employees that the company would be cutting 1,000 manager positions as soon as possible. Although the financial pros and cons of the layoffs were not disclosed, it appears as though Intel is struggling to keep up with AMD. (Source: news.com)

The next six months could determine Intel's entire future. It plans on releasing a new, powerful chip (the Core 2) which it hopes snatches back the dominant part of the market lost to AMD. In contrast, AMD, which also slashed prices of current generation chips, is not officially releasing new processors until 2008.