Intel entrenched its status in China against main rival Advanced Micro Devices (AMD) after signing a cooperation agreement with Founder.

Intel last week signed a memorandum of understanding with the Beijing University Founder Group, China's second biggest computer producer. The agreement offered technological support and training for the two company's cooperation on digital home service. Only four months ago, however, Founder formed a strategic alliance with the US-based AMD. Under the agreement, it would make and sell computers based on AMD's 64-bit microprocessors.

Lenovo Group also signed a pact with AMD in June to use AMD's Athlon 64 and Athlon XP microprocessors in some of its desktop personal computers, but market analysts say that it has so far devoted only a small amount of resources to advertising the line of PCs based on AMD's chips. The chips are planned to make a hit during the summer time.

Intel's capital strength also accounts for the change of attitudes of the two computer moguls, said a senior official with a computer manufacturer, who refused to be named. Intel has a special fund to help business market products, he said, but AMD cannot offer the same financial support. Despite this, AMD is following Intel's lead. The company is striving to change the situation with plans to promote its 64-bit calculation technology on the PC and server markets.