AMD's Intel lawsuit reveals worrying situationBy Jose Vilches
With AMD posting its six consecutive quarterly net loss last month amid continued market share losses to Intel, it's no secret that the company has quite a rough path ahead of themselves. Now, AMD is revealing further details about the dismal state of its finances as part of a court filing that will be used in an antitrust suit that the struggling chipmaker is mounting against Intel.
The brief says that AMD had 13 percent of the processor market by the end of 2007 and that it needs to double its market share in order to "operate long term as a sustainable business." The company points its finger at Intel as to why it might be nearer to bankruptcy than ever before, alleging the chip giant gave special treatments and monetary incentives to computer manufacturers to use their chips.
The lawsuit, if sustained in court, could potentially allow AMD to demand substantial monetary damages from Intel. Such claims, however, could also backfire and further spook corporate customers already wary of the company's financial troubles.