Company plans to build computer classrooms in 40 areas across China

BEIJING - AMD Inc will work with partners to build computer classrooms in 40 areas in China in three years, as the US chipmaker taps the nation's rural market, company officials said on Wednesday.

Following a meeting between AMD Chairman Bruce Claflin and Vice-Minister of Industry and Information Technology Yang Xueshan on Tuesday, AMD China said on Wednesday that it will build the classrooms within the next three years.

"Our success in China has been based on our strong partnership with key organizations, such as MIIT (the Ministry of Industry and Information Technology)," said Claflin.

The program aims to play a part in popularizing and promoting the use of information technology in rural areas.

The company did not disclose the investment in the program, but a report on the news website Sina.com.cn in September said AMD would spend 3 million yuan ($450,000) this year on building the classrooms.

The company launched its rural project in 2009, and has already established 13 training centers, with the number due to rise to 21 by the end of this year.

"We will go to more regions to help rural people to learn about computers," said Karen Guo, AMD senior vice-president and the company's president in China.

AMD is cooperating with the ministry in training programs on integrated circuit design, CPU test technology, and policies and standards for the IT industry.

The company also plans in the next few years to establish its second global center in Beijing's Zhongguancun area to support its US headquarters and help to drive the growth of China's information industry.

AMD entered the Chinese market in 1993, starting in a small office, which dealt with sales and marketing. In 2009, the Chinese market accounted for one-third of AMD's global sales revenue.

"The reason for AMD to set up its global center in China is the market," said Vincent Gu, senior analyst of technology research company iSuppli Corp.

"China has become the biggest PC and consumer electronics market in the world, so AMD has to work closer with Chinese partners."

According to Claflin, the new global center and expansion plan means China is not only an important market itself but also a key venue for research and development, sales, marketing, training and service.

Gu said that AMD should have a closer relationship with its Chinese customers and let China play a more important role in its global market.

"Compared with its rival Intel, AMD should pay much more attention to its Chinese headquarters and work closer with its customers," Claflin said.

Claflin noted the second global center in Beijing will play a more important role in its global operations, including decision-making and international cooperation.

China Daily

(China Daily 10/14/2010 page15)