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Intel to streamline amid challenges

By Wen Dao (China Daily)
Updated: 2006-12-01 08:54

Currently, Intel China reports to the Greater China operation, which then reports to the Asia-Pacific headquarters in Hong Kong and Singapore. The long process has been one of the major reasons the firm has lost companies such as Lenovo and Founder Technology to AMD.

Cao Ran, an analyst with CCID Consulting, said the attacks from AMD require the chip giant to change its structure in China to have a flexible reaction in the market.

Three years ago, AMD had just a fraction of a market share, but now its share is about 25 per cent.

"AMD has given a lot of pressures to Intel, since Lenovo Group endorsed AMD chips in 2004," said Cao.

She said China is a top priority for both Intel and AMD considering the size of the market, but AMD has been more aggressive in making the necessary changes for the market.

In 2002, AMD named Karen Guo corporate vice-president and president of AMD China, directly reporting to the company CEO to highlight its focus on the China market. Last week, it promoted Guo to corporate senior vice-president to reward her for the achievements and give her more authority.