As it turns out Intel is threatening to terminate AMDís rights to the patents in 60 days if the alleged breach is not corrected. According to them, GlobalFoundries is not a subsidiary under terms of the agreement and is therefore not licensed under the 2001 patent cross-license agreement. AMD on the other hand views this merely as a way for Intel to distract the public's attention from its recent antitrust battles with the European Commission and accused them of violating the agreement terms by threatening termination.
The cross-licensing agreement enables each company to use the chip technologies of the other to make a wide variety of products. However, a party that has been found to be in material breach of agreement would lose these rights while the other non-infringing part can still access all the information in question. In other words, we can probably expect a long and heated patent battle.