Advanced Micro Devices (AMD)  inked a collaboration with Tianjin Haiguang Advanced Technology Investment Co. (THATIC) to supply processors and system-on-chip technology for the Chinese market. The collaboration will also focus on design server chips.

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THATIC is the investment arm of the Chinese Academy of Sciences. AMD will be responsible for technological aspects and providing key engineering components while THATIC will take care of financing and supporting technical issues.

AMD has clarified that the deal specifications do not extend to its GPU and ARM IP. China is currently investing heavily in modernizing its semiconductor expertise. It is taking a multipronged approach with equal emphasis on manufacturing and IP side. The deal will also help AMD in developing itself as a full spectrum firm.

China constitutes the world's largest market for semiconductors, which are used as a key component for gadgets ranging from computers to mobile phones. The main thrust of the agreement is related to x86 server. The agreement will help AMD to expand its user base and present a reinforced competition to its much bigger competitor Intel.

No details about the constituents' share in the agreement have been provided. AMD is not likely to make any financial investment. 

AMD expects the deal to turn around the company fortune. A major player in chip market, AMD announced its first quarter revenue at $832 million with net loss of $109 million. Its revenue registered 19 percent decline on y-o-y basis while net loss increased by $7 million.

TagsSemiconducor, server, X86 Servers, china, AMD, Quarterly Results