NEW DELHI: It’s not summer yet, but corporate wars in India are generating plenty of heat. This time around, it’s not the traditional cola wars but chip wars, between the $6-billion AMD and $38-billion Intel.

The global battle for market share between the world’s largest chipmakers, AMD and Intel, has reached India’s doorstep. AMD, the world’s second largest chip maker, is planning to move the Competition Commission of India (CCI) to make a representation on monopoly trade practices in the fast-growing microprocessor market, specifically in the government vertical.

Chipmaker AMD’s contention is a clause in most Central and state government tenders that ask bidders to bid with machines having only Intel microprocessors. For example, the Lok Sabha tender for about 200 PCs, 105 laptops and 80 palmtops last year required a bid from OEMs on only Intel-based processors.

“We plan to represent our anti-trust case in the Competition Commission of India. What we want from the government is fair and open competition and a chance to participate in government tenders. Currently, choice for government agencies to opt for any other chip technology just does not exist in 90% of the tenders. AMD has aggressively taken up this issue with the government,” says AMD India MD Alok Ohrie.

AMD is unhappy as it is being left out of most tenders and rival Intel is gaining market share without competition. Intel has a majority (almost all) share in the government vertical, which accounts for 15-16% of the total sales in India, according to IDC. AMD, however, has a negligible market share in the government vertical. Overall, Intel has a market share of about 79.6% on all products in India as compared to about 21.4% for AMD.

In some states, AMD has succeeded as well. For example, in Karnataka, the state government removed the ‘Intel-based system’ clause in tenders. But, in many others like Shipping Corporation of India and Central Bank tenders issued last year, the clause caused non participation, which irked AMD.

Intel, however, disagrees with AMD’s claims. “Intel always believes in competing fairly. We believe in a level playing ground for everyone without exceptions. Whilst an integral part of our value of customer orientation includes the goal to be vendor of choice, it’s equally important for us to conduct business with uncompromising integrity and professionalism,” an Intel spokesperson told ET.