REPORT - Intel says trade officials raided its Japan office

Japan's fair trade watchdog raided the offices of Intel Corp's (NasdaqNM:INTC) Japanese unit on Thursday and a government source in Tokyo said the chip giant is suspected of violating antitrust laws, says a Reuters report.

"They have worked to prevent other processor makers from supplying personal computer manufacturers," the source said.

Intel, whose processors are used in four out of every five personal computers worldwide, said investigators from the Fair Trade Commission (FTC) had raided its office in Tsukuba, near Tokyo, but declined any further comment.

Intel's main rival is Advanced Micro Devices Inc (AMD) (NYSE:AMD - News). Shun Yoshizawa, director of corporate marketing at AMD Japan, said FTC officials also went to its offices earlier on Thursday, but emphasised that it was not a raid and said it plans to cooperate fully with the investigation.

"The FTC is doing this on suspicion that Intel might have broken an antitrust law, that's the only thing we know," Yoshizawa said.

Local media said Japanese regulators were investigating whether Intel intentionally undercut competitors with large discounts and threatened to stop shipments unless PC makers used its chips.