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AMD banking on China in competition with Intel

By Paul Wallis     Jun 28, 2007 in Business
The occasionally fashionable “other” chip maker, AMD, reports a surge in revenue and staff numbers in its Chinese operations. Chinese domestic PC makers are turning to AMD, in a reversal of previous buying behavior.
AMD has also finally found a footing in a major market, the government sector, which was almost purely Intel-oriented. That matters, because the sector is not only huge, but tends to drive market opinion.
AMD’s share of the Chinese market rose to 25%, which by any assessment would be significant, but in this case dwarfs its share in 2002. It’s quite possible that China feels a need for alternative suppliers, to both retain exposure to the technologies and to reduce any dependence on a single supplier.
In addition, AMD is trying some interesting strategies in joint ventures with other vendors in China, one of which is setting up 1.47 million low cost computers for remote area education in rural areas The program began in 2002 and will be completed this year. This is a very important contract, because those agricultural areas are very much behind the rest of the nation, and it relates to serious policy matters in Chinese education and plans for domestic economic development.
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