AMD, Intel slugging it out in the Far East

BusinessWeek has an article on the battle between AMD and Intel for market share in China and India. Both manufacturers have announced a number of initiatives in the past few weeks. AMD will partner with SemIndia to develop and product microprocessors, and has plans to share technology with Beijing. Meanwhile, Intel has announced a $1 billion investment in Indian chip research and venture capital investment, while Intel Chairman Craig Barrett opened a $200 million assembly and testing facility in China just last week.

2005 was apparently a very good year for AMD in both the Indian and Chinese markets. The company's Indian market share is up from zero in 2004 to 13%, while Chinese market share has more than doubled to 19%, thanks to an agreement with Lenovo. AMD still faces an uphill battle in both markets, though. Intel commands far more market share, and has better distribution and much more experience selling to Indian and Chinese customers. However, with billions of potential customers and low computer penetration rates, these two markets will be integral to both companies over the next decade.

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