Major Battle Between Intel, AMD Shaping Up in
China
The world's two largest microprocessor makers, Intel
and AMD, are garnering for an intense battle for market
share in China. All signs point to a no-holds barred match,
with Chinese computer makers and consumers as the winner.
Intel is the world's largest designer and manufacturer
of microprocessor chips, which are the brains of computers.
AMD (Advanced Micro Devices) is the second-largest maker
of microprocessors which also run Windows and Linux, and
has 20 percent of the global market for microprocessors.
Intel has long been the dominant player in China, while
AMD has only recently crossed over into the teens in China.
Traditionally, AMD has only been popular with certain
consumer niches, but recently it has had wins with makers
of corporate computers, including Sony and HP. Computers
running AMD microprocessors usually sell for less than
Intel microprocessors.
Since microprocessor sales have been largely stagnant
in the US, Europe and Japan over the past two years, Intel
and AMD have expanded their presence in the China market,
which has registered robust growth.
In July, AMD signed a deal to develop China's latest
supercomputer, which would be developed by Dawning Information
Industry, and would be powered by 2,000 Opteron microprocessors.
This supercomputer would run Linux, the open source operating
system, and would run at 10 teraflops. China has recently
shone a strong preference for Linux, and the Chinese government's
relationship
with Microsoft has been testy. This project is mainly
aimed at raising AMD's profile in China, and developing
a favorable relationship with the Chinese government,
since having a good relationship with the government is
all-important in China.
AMD aims to increase its market share at least twice
as fast as the overall market share there.
In August, Intel announced a new
testing and packaging plant in western China while
Craig Barrett, Intel CEO was making a visit. During his
visit, Barrett praised China for its low-cost labor and
high educational standards. He also added that AMD would
not enjoy its traditional low-cost advantage, and said
that China was very quick in adopting new Intel technology
products, and was the fastest to switch from Pentium III
to Pentium IV in the world.
Barrett's statement shows that Intel will sell its microprocessors
in China at a discount just to keep or expand market share,
and keep AMD from expanding in what is shaping up to be
a "must-win" market for both companies.
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