US microprocessor manufacturer AMD yesterday opened its Shanghai research and development (R&D) centre, the firm's largest overseas R&D investment.

The opening of the R&D centre, AMD's second on the Chinese mainland, which involves a total investment of US$16 million, points to the growing role China is playing in the firm's efforts to catch up with its arch-rival Intel.

Around 100 engineers will work at the centre,  with the number expected to grow to 400 within two years.

AMD currently has about 70 development engineers working in Beijing and 200 in Taiwan.

"The establishment of the Shanghai R&D centre is a stage in our 'walking' period in China," said Dirk Meyer, president and chief operating officer of AMD.

Comparing his company's development to the growth of an infant, Meyer said AMD, which began to invest heavily in China in 2002, had now just passed the "crawling" stage.

In the "walking" stage, the US firm wants China to become a more important part of its global operations, and will base some of its business units' global headquarters in China, which will develop products for global markets.

The Shanghai centre will focus on the development of AMD's microprocessors used in notebook computers, as well as validating and testing solutions for computer makers in the domestic and international markets.

AMD, which has been trying to challenge industry behemoth Intel in recent years, has made significant progress in the global and Chinese markets.

China is the world's second-largest computer market and manufactures 80 per cent of the world's computers, with Lenovo Group, China's biggest computer manufacturer, being a major user of AMD products.

1

2

(For more biz stories, please visit Industry Updates)