Under the pact signed Thursday, Founder Group will incorporate AMD's Opteron and Athlon 64 processors into an upcoming line of computers. AMD designed the two 64-bit-capable chips for servers and PCs, respectively.
The two companies will also work together to promote the new products, which are set for launch within the next three months, they said in a joint statement.
Like most technology companies, AMD is eager to beef up its presence in China's. The chipmaker has previously joined hands with Founder to set up a to focus on the Chinese consumer electronics market.
In addition, AMD has multiple alliances to market its chips in the country, including bundling arrangements with Hewlett-Packard and Chinese PC manufacturers such as Tsinghua Unisplendour and Amoisonic Electronics.
According to market researcher IDC, China's PC shipments totaled 13.3 million units last year, an 18 percent jump from 2002. Declining prices and large-scale government and education sector projects were cited as the main reasons for China's PC boom.
Winston Chai of CNETAsia reported from Singapore.