Toshiba adds AMD as chip supplier with Intel

Tokyo, May 29: Toshiba Corp. said on Tuesday it will buy microprocessors from Advanced Micro Devices Inc., the latest personal computer maker to switch some orders to AMD from dominant chipmaker Intel Corp Until now, Intel has been the sole supplier of the component to Toshiba, the world's fourth-largest notebook PC maker.

Toshiba rival Dell Inc. last year began buying processors from AMD instead of solely from Intel.

Toshiba spokeswoman Yuko Sugahara said the Japanese company expects to put AMD processors in about 20 percent of the notebooks it sells in the United States and Europe.

''We plan to put AMD chips in moderate-priced standard models for individual and corporate clients,'' she said.

The Nikkei business daily reported earlier that prices of AMD-equipped PCs are expected to sell for up to 10,000 yen () less than comparable models.

Toshiba, the world's fourth-biggest notebook computer maker, will install AMD chips in some models to be released this summer, enabling it to reduce parts-procurement costs by at least 10 percent, the paper said.

It also said Intel had a global market share of nearly 90 percent in 2004, but the figure has dropped to about 80 percent as AMD has stepped up its offensive with cheaper products.

Shares of Toshiba were up 0.5 percent at 901 yen as of 0024 GMT, while the benchmark Nikkei average fell 0.18 percent.

Reuters>