Intel is heading for yet another face-off with competition authorities after Andrew Cuomo, the New York Attorney General, launched a formal investigation against the world’s largest microchip maker.

Mr Cuomo has demanded information from Intel as part of an investigation “focused on determining whether Intel has improperly used monopoly power to exclude competitors or stifle innovation," he said.

In particular, the investigation will ask whether Intel illegally hampered AMD, its largest – and bitterest – rival.

Intel, which controls as much as 75 per cent of the global microprocessor market, also faces legal and regulatory action linked to alleged market abuses in Japan, Europe and South Korea.

Last year, the European Commission charged Intel with violating antitrust rules by selling its chips below cost to strategic customers, among other practices.

"We will also look at whether Intel abused its power to remove competitive threats or harm competition in violation of New York and federal antitrust laws," Mr Cuomo said.

His action led to calls from several American lawmakers for the Federal Trade Commission to launch a similar investigation.

An Intel spokesman said the company would “work very hard” to comply with the New York subpoena.

He added: “We believe our business practices are lawful and that the microprocessor market is competitive and is functioning as one would expect a competitive market to function.”

Despite waning demand for personal computers, Intel is expected to post a double-digit hike in revenues when it reports fourth-quarter results on Tuesday.

Analysts expect Intel to report earnings of 40 cents per share on revenue of $10.84 billion, compared with 26 cents per share on revenue of $9.69 billion for the year-ago period.

Intel had said it expects to report revenue of between $10.5 billion and $11.1 billion.

The group’s shares have lost about 15 per cent of their value so far this year amid fears that a slowdown in the global economy will hit computer component makers.

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