AMD Aims to Boost Market Share in China - Newspaper

by Anton Shilov
09/06/2005 | 10:25 PM

Advanced Micro Devices has made a yet another promise to boost its market share. This time the company aims to lift the part of the market it commands in <%BANNER[article]%>China from 18% to 30% in a few years, according to a local newspaper.

“AMD forecasts its market share in China will grow to 30% in two or three years thanks to firmer cooperation with personal computer makers and emerging new opportunities, like net cafes,” The Shanghai Daily news-paper reported.

Citing international technology consulting firm IDC, AMD’s representatives in China claims that in Q1 2005 the company controlled 18% of the microprocessor market in the country, slightly above its market share worldwide, whereas Intel Corp. held the rest.

“AMD used to focus on the DIY (do-it-yourself) market but the market size is limited compared with branded PC markets,” Li Ke, an analyst at Beijing-based CCID Consulting Co, a research firm under the Ministry of Information Industry, is reported to have said.

But recently AMD strengthened its relations with Chinese PC makers. Currently, Lenovo Group, China’s largest PC maker, Founder Technologies, Tsinghua Ziguang and Dawning, which focuses on server computers, are among AMD clients. Sales of Chinese computer chips reached 39.3 billion yuan ($4.85 billion) last year and it is expected to hit 46.9 billion yuan in 2006, according to CCID.

AMD’s chief executive officer said in mid-2005 that he expected the company’s market share across the world to reach 33% in two or three years time. Other AMD executives have made even bolder claims and expected the chipmaker’s share to be 50% by 2015.