Intel is not trying to shut down AMD or GlobalFoundries, a source inside Intel Corporation told DailyTech in a phone conversation. The chip giant is simply trying to protect its intellectual property, which it doesn't want to see distributed without its control.

"Whenever a company uses technology developed by Intel, it reinforces Intel's technology leadership position", our source stated, speaking in an unofficial capacity.

AMD recently spun-off its manufacturing fabs and support staff into GlobalFoundries. This new joint venture with ATIC (Advanced Technology Investment Company) is expected to become a major player in the foundry market, which produces semiconductor chips from integrated circuit designs for many technology firms, including Texas Instruments and NVIDIA.

Intel believes that GlobalFoundries is not a subsidiary under the terms of a 2001 patent cross-licensing agreement, and is therefore not licensed to produce CPUs that use key technologies licensed under the agreement.

In a filing with the Securities and Exchange Commission, AMD stated Intel "purports to terminate the Company's rights and licenses under the Cross License in 60 days if the alleged breach has not been corrected."

In the phone conversation with our source, references were made to IP licensing deals with companies such as Taiwan Semiconductor Manufacturing Corporation (TSMC), which recently signed an agreement with Intel allowing manufacturing of Atom derivatives, albeit on a limited scope and scale.

Our source also noted that although Intel is suing NVIDIA over its chipset license in a separate case, that doesn't mean that Intel isn't willing to negotiate a deal allowing the graphics company access. He stated, "The first step is for NVIDIA to recognize our IP. Then we can sit down and work out a deal".

Apparently Intel is open to all sorts of deals, as another source told DailyTech that a licensing deal with GlobalFoundries is possible, if only they would acknowledge that they are a third party and not a subsidiary of AMD, and that they need to broker a separate agreement.