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AMD chips to power Founder PCs

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CIOL Bureau
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HONG KONG: Advanced Micro Devices Inc, the world's number two maker of central processing units (CPUs) for personal computers, said it reached a deal to sell its chips to one of China's top three PC vendors.

This is U.S.-based AMD's second major deal with a China-focused personal computer seller.



The company is battling to grow in the world's second largest PC market, which is dominated by Intel Corp, the world's top maker of CPUs.



Under the new memorandum of understanding, AMD will supply its cutting-edge AMD64 chips for use in PCs to be built by Founder Group, which controls between six and nine percent of the Chinese market.



AMD, which is based in Sunnyvale, California, said products from the alliance are expected to become available in 90 days.



"By combining the advantage of AMD's...technologies and Founder's...solid local resources, this alliance will serve as a launch pad for both parties to grow," said Karen Guo, general manager of AMD China.



Last year, AMD signed an agreement to provide CPUs to Hewlett-Packard Co, the world's number two PC seller, for some of Hewlett-Packard's China models.



China's leading PC seller, Lenovo Group Ltd., which controls 25 percent or more of the market, buys all of its CPUs from Intel. Intel has spent considerable time and money building up its local manufacturing and distribution.



China overtook Japan last year to become the world's second largest PC market after the United States. PC sales in China totaled about 13 million units and the number is expected to grow 19 percent this year, according to International Data Corp.



Apart from the Hewlett-Packard and Founder deals, AMD CPUs are largely available in China only in "white boxes," which typically carry no brand and are often assembled by individuals.



© Reuters

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