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China's largest information technology product distributor, Digital China Holdings Ltd, and US central processing unit (CPU) maker AMD yesterday formed a strategic alliance in Beijing to develop the do-it-yourself (DIY) computer market.

Under terms of the agreement, Digital China will distribute AMD's processor in a box (PIB) products all over China through its distribution channels and provide after-sales support for such CPUs from the US semiconductor giant.

The PIB products, including an AMD CPU, a cooling fan, a three-year warranty, and other documents, will mainly be targetted at individual DIYers, who like fixing different computer parts instead of buying ready-made computers.

"AMD is well-known throughout China for its leading technology and remarkable quality, especially in China's DIY market,'' said Mao Xiangqian, senior vice-president of the Hong Kong-listed Chinese distributor.

"On the other hand, working with AMD as a distributor enables Digital China to define the goals of its DIY strategy more clearly and devise better solutions for its implementation.''

Digital China promised to fully integrate its sales channels throughout China to make AMD processors available all over the country.

The two companies will also build 500 Digital China-AMD pro-shops in the world's second largest computer market to enhance the brand image of AMD.

Meanwhile, both companies have aimed to train 1,000 certified engineers to be engaged in after-sales service.

Although AMD is the second biggest player in the world's CPU market, it has been lagging behind its arch-rival Intel on the Chinese market because of a lack of strong partners in China and the paramount influence of Intel on Chinese computer makers.

The partnership with Digital China, which has more than 5,000 distributors in China, will be a big boost to AMD's plan to change the scenario of the competition against Intel.

According to domestic market researcher CCID Consulting Co Ltd, the total sales of CPUs in China were worth 29 billion yuan (US$3.5 billion) last year, including 38 per cent from DIY market.

It predicted that this year, the DIY segment will grow by 16.6 per cent over 2002.

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