Intel Corp. has raised concerns about Advanced Micro Devices Inc.’s plans to spin off its manufacturing operation and create a foundry with partners.

Sunnyvale-based AMD (NYSE:AMD) announced earlier this week plans to separate its manufacturing from its chip design, creating a new firm to be referred to temporarily as The Foundry Co.

The Foundry Co. will move forward in seeking to secure $1.2 billion in state incentives promised to AMD to build a $4.6 billion chip plant in the Luther Forest Technology Campus in Malta, N.Y. The firm will be based in the United States.

Advanced Technology Investment Co. (ATIC), based in Abu Dhabi, will invest $2.1 billion to purchase a stake in The Foundry Co. AMD will then focus on chip design and no longer manufacture the chips.

The Foundry Co. will assume about $1.2 billion of AMD’s debt. ATIC has also committed between $3.6 billion to $6 billion during the next five years to fund the company’s expansion.

And Mubadala Development Co., also based in Abu Dhabi, will increase its investment in AMD from 8.1 percent to 19.3 percent. ATIC is an investment company formed by the government of Abu Dhabi to invest in advanced technology opportunities.

“We’re concerned we don’t have enough information,” said Santa Clara-based Intel (NASDAQ:INTC) spokesman Chuck Mulloy. “All we’ve said is we have some serious questions about this transition and we need to understand more about it, particularly as it relates to our intellectual property rights. All we have so far are the press releases, the public statements and the press coverage. We’ll be digging into this more.”

Mulloy said Intel has a cross-licensing agreement with AMD that dates back to 1976. A new agreement was signed in 2001 and expires in 2010.

Mulloy said the agreement between AMD and Intel is confidential. However, he said Intel is willing to allow the agreement to be released publicly.

“Under this, AMD pays Intel royalties for patent rights. We get their patent rights and they get our patent rights,” Mulloy said. “The specific issue is the cross-licensing agreement.”

AMD has to receive both shareholder and regulatory approvals for the plan to move forward, something AMD has said it expects will happen. New York also has to approve the deal to provide $1.2 billion in state incentives to the new entity, The Foundry Co.

Mulloy said if AMD gets the necessary approvals, “I’m sure this transaction gets done.” He said Intel raising its concerns “isn’t a threatening move.”

Ward Tisdale, AMD’s manager of global community affairs, said of Intel’s concerns: “It’s a bunch of nonsense, frankly. We have very competent lawyers who looked at this deal from top to bottom.”

AMD spokesman Travis Bullard added: “We are completely confident the structure of this transaction takes into account our cross-license agreements. Rest assured, we plan to continue respecting Intel’s intellectual property rights, just as we expect them to respect ours.”