Chipmaking giant Intel has released its first response to rival AMD's lawsuit against it, saying that it is 'full of excuses and speculation'.

AMD issued a legal challenge earlier this week, accusing Intel of anti-competitive practices and of abusing its position in the market to try and shut its smaller rival out of key markets.

In a statement released late yesterday, Intel strongly denied the allegations and argued that customers are benefiting from the intense competition between the two semiconductor manufacturers.

'We strongly disagree with AMD's complaints about the business practices of Intel and Intel's customers. Intel believes in competing fairly and believes consumers are benefiting from this vigorous competition,' said a spokesman for Intel.

'AMD has chosen yet again, to complain to a court about Intel's success... Intel will vigorously contest AMD's latest complaints and is committed to winning this case in court,' he added.

Part of AMD's case is said to rest on Intel's recent altercation with the Japanese fair trade commission, although Intel argues that AMD's claims are incorrect.

'We believe that AMD's statements about the recent actions of the Japanese fair trade commission are incorrect. Intel agreed to abide by [the commission's] recommendations, to resolve the matter and get on with its business, when doing so though it did not admit, in fact it disagreed with the agency's alleged facts, and violations of law,' the spokesman said.