Advanced Micro Devices said Wednesday that China's biggest personal computer maker, Lenovo Group, will use its chips in a new line of desktop personal computers.The pact marks the number two chipmaker's largest push yet into the vast Chinese market and its first deal with Lenovo, which previously only used chips from rival Intel.
Under the deal, Lenovo has begun selling a line of PCs using AMD's Athlon 64 and Athlon XP microprocessors through Lenovo stores throughout the country.
China represents a hot growth market for PCs, with IT research firm Gartner Dataquest forecasting continued strong growth in the low double-digit percentage range this year.
In 2003, the Chinese PC shipments grew just over 10 percent to nearly 13 million units, according to Gartner Dataquest.
Lenovo, formerly known as Legend Group, claims about 27 percent of the PC market in the world's most populous country.
The latest deal is AMD's second march into China. In March, it unveiled an alliance with China's number two PC maker, Founder.
"AMD is committed to China and we recognize the Chinese market has a great potential for growth," spokesman Tim Martin said by telephone from China.
He declined to provide specific terms of the deal or sales targets.
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Nov 02, 2006
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