Nvidia accuses Intel of unfair chip pricing

Nvidia makes graphics chips that pair with Intel's low-powered Atom in lower-priced netbook computers. He said Intel sells an Atom chip by itself for $45, but sells a three-chip set for $25 to lure business away.

That seems pretty unfair, he said. We ought to be able to compete and serve that market.

Last week, the European Commission fined Intel $1.06 billion euros and ordered it to change its business practices for competing illegally against Advanced Micro Devices.

Intel brushed off Huang's suggestion.

We compete fairly. We do not force bundles on any computer makers and customers can purchase Atom individually or as part of the bundle, said Bill Calder, a spokesman for Intel. If you want to purchase the chip set, obviously there is better pricing.

For now, Huang plans no legal action.

I hope it doesn't come down to that, he said, adding: We have to do whatever we have to do when the time comes. We really hope this company (Intel) will compete on a fair basis.

(For summit blog: http://blogs.reuters.com/summits/)

(Reporting by David Lawsky; Editing by Edwin Chan and Tim Dobbyn)