updated 8/7/2006 12:23:22 PM ET 2006-08-07T16:23:22

In another sign of the inroads Advanced Micro Devices Inc. is making against rival Intel Corp., No. 3 computer maker Lenovo Group Ltd. is rolling out a new line of desktop PCs with AMD chips.

Lenovo has long offered PCs with AMD chips in Lenovo's home market of China, but not until February did Lenovo launch AMD-based PCs elsewhere, with a line of computers for small and medium-sized businesses. Now, AMD chips will be available in Lenovo's new ThinkCenter A60 PCs, which are targeted at big business customers. The systems are expected to be announced Tuesday.

Increasingly, large businesses "were asking what my AMD strategy is," said Dilip Bhatia, Lenovo's program director for the ThinkCenter line. "I think it gives them flexibility and choice."

Even while locked in an intense price war with AMD, Intel sells about 80 percent of the world's microprocessors. But AMD has eaten up about 5 percentage points of Intel's market share in the past year with chips widely considered to be better performing.

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