AMD announced the establishment of its headquarters for Greater Chinese operations in Beijing. The company hopes to establish higher market share in the country, where major PC vendors that do not adopt AMD chips, such as Dell, have lower penetration. AMD has also pointed to the robust clone market and the numerous regional players that dot the landscape -- characteristics that may be more advantageous to the chipmaker.

 

AMD has invested roughly US$200 million in its China operations, which include four plants, two of which undertake test, mark, and packaging.

 

In May 2004, AMD established AMD (China) Co. Ltd, a holding company for its China operations. Up to the present, AMD has invested US$5 million of a US$30 million commitment made to authorities.

 

AMD has stated that they are not looking to invest in a Chinese chip fab at present, and instead will focus on developing its US$2.4 billion foundry in Germany. Slated for completion in 2006, AMD has said that further fab investment plans will not be hatched until the Dresden factory is running at full capacity.