Founder, AMD form alliance

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Last updated at: (Beijing Time) Friday, March 26, 2004

Founder, AMD form alliance

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US semiconductor company Advanced Micro Devices (AMD) Inc yesterday formed a strategic alliance with the Chinese information technology firm Founder Group to promote its 64-bit microprocessors, which is considered a breakthrough for AMD in the world's second-largest computer market.

According to the agreement, Founder Group will make and sell computers based on AMD 64-bit processors, and the products will be released to the market in 90 days.

The currently dominant 32-bit computing technology allows processors to manage computer memory of no less than 4 gigabytes, but the 64-bit technology can manage thousands of gigabytes in memory.

AMD 64 processors are the only ones in the world thar are compatible with software based on both 32 and 64-bit computing technology.

"The partnership with Founder Group will enable us to integrate AMD's technological advantage with Founder's local resources and it will become a new start for our business in China," said Karen Guo, AMD Corporate Vice-president and general manager of AMD China.

The computers made by Founder Group will be first used in the publishing sector, where Founder has more than 80 per cent of the market share and which demands a strong ability to handle memory.

Then Founder will release more products in other memory-demanding sectors, like games and graphic design.

Since Founder Group controls China's second-largest computer maker Founder Technology, the partnership between two companies was believed to mark a major breakthrough for AMD to challenge US giant Intel's dominance in the Chinese market.

AMD, the No 2 microprocessor maker in the world after Intel, has been under great pressures due to Intel's dominance in the Chinese market.

According to market research house Gartner, AMD's market share in China in the third quarter was about 29 per cent, while Intel took almost all of the rest.

Almost all Chinese computer makers only used Intel processors two years ago.

Although AMD broke ground last year and won support from Tsinghua Unisplendor and Amoi, none of the major players like Legend Group or Founder Tech adopted its processors, because they are heavily dependent on Intel's supply of microprocessors.

The co-operation with Founder Group was believed to help win Founder Tech, which claimed it sold more than 1.5 million computers last year.

Since Founder Group does not make computers itself, the partnership was even believed to be fulfilled by Shanghai Stock Exchange-listed Founder Tech.

With the deal, the Chinese company may also change the situation that Founder Tech's market share declined last year.

Source:China Daily

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