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Update: Intel Says AMD Is To Blame For Its Own Problems

Advanced Micro Devices Inc.'s failure to compete effectively with Intel in the microprocessor market is a "direct result of AMD's own actions or inaction," and weren't caused by any illegal actions by Intel, the microprocessor market leader said in court documents filed Thursday.

The filing in U.S. District Court was Intel's first formal response to AMD's lawsuit filed in June that charged Intel with using bribery and coercion of computer makers and retailers to limit the use of AMD processors.

AMD has used "out-of-context snippets ... to create the impression that Intel engaged in misconduct," Intel said its response. AMD's lawsuit also represents "a case study in legal dissonance. Although AMD has purportedly brought its complaint to promote competition, its true aim is the opposite. Under the cover of competitive law, AMD seeks to shield itself from competition."

Intel claims in its response that AMD is seeking to blame Intel for its own "many business failures ... that have determined its position in the marketplace." AMD's position in the marketplace "reflects its uneven track record, and its repeated failure to deliver on its promises."

Specifically, Intel points to AMD's "playing it safe ... with anemic investment in manufacturing capacity, leaving Intel to shoulder the burden of investment to enhance the usefulness of computers and enhance the market." In addition, Intel claims AMD has been "dogged" by a reputation of being unreliable as a supplier, has traditionally lagged in innovation, and has seen products delayed well beyond original launch dates.

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