AMD in chip deal with Toshiba

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Advanced Micro Devices revealed Tuesday it had broken the stranglehold of its larger rival Intel on another PC maker, announcing a deal with Toshiba to supply chips for its notebook computers.

The news came a year after Dell announced it would end its exclusive use of Intel microprocessors and begin buying from AMD.

Toshiba had been the biggest remaining holdout among PC makers who relied solely on Intel for processors. It appears to have caved in for the same reasons as Dell – the brutal level of competition in the PC market.

Dell’s decision came after it was overtaken by Hewlett-Packard as the number one supplier of PCs.

Toshiba is the number four laptop maker after HP, Dell and Acer, who all use AMD and Intel chips. Toshiba has been increasing sales, but its margins are wafer-thin, particularly in low-price segments of the notebook market.

A Toshiba spokeswoman said AMD’s chips would allow it to expand its product line. They would be used in moderately priced models for individuals and business users.

AMD said Toshiba would introduce three Satellite notebooks based on its new mobile platform of dual-core microprocessors and graphics chipsets. The computers would be available for the back-to-school season.

Henri Richard, AMD head of sales and marketing, said seven of the top ten notebook manufacturers would now be shipping AMD-based systems.

“Today signifies an important achievement in AMD’s mobile business,” he said.

The three remaining Intel-only notebook PC makers in the top ten are Lenovo, Sony and Apple.

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