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Intel to streamline amid challenges

By Wen Dao (China Daily)
Updated: 2006-12-01 08:54
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Intel is likely to make China an individual branch and have it directly report to global headquarters as early as January, as the company is trying to shorten the decision-making process and fend off aggressive attacks from rival AMD.

Intel's move comes two years after AMD established a similar operation, which had placed AMD in a better position in the China market compared to Intel.

A source with Intel China, who declined to be named, said the decision has yet to be made, but suggested the move may be soon.

The 21st Century Business Herald newspaper said yesterday the announcement will be made in mid-January.

"This just reinforces our commitment to the China market, considering its importance as the second-largest computer market in the world," said the Intel source.

According to Chinese market research firm CCID Consulting Co Ltd, Chinese customers will buy 22 million computers this year, double-digit growth compared to 2005.

The new plan is aimed at making China Intel's fifth regional market together with the Americas, Asia-Pacific, Japan, Europe, the Middle East and Africa. The China operation is expected to have more authority in regional strategies, including marketing budgets and formats, as well as relations with computer makers and distributors.

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