HP has no love for Intel or AMD in China

HP unveiled today the new HP Compaq dx2020, an extremely efficient commercial PC for the Chinese market. Perhaps the most interesting detail that makes this computer far from ordinary is the fact that it’s powered by a VIA C7-D desktop processor from VIA Technologies.

VIA Technologies is the world’s largest independent manufacturer of motherboard chipsets. But the VIA chipset is just the beginning; many components of a computer are manufactured by VIA Tech including audio controllers, network controllers, CD/DVD writer chipsets, and even low-power CPUs.

VIA Tech has focused their energies in creating integrated circuits for the PC market, and while they play a vital role in nearly every PC out there, they don’t seem to catch the attention that other chipset providers like AMD, Intel, and ATI have generously been given.

So why would HP choose VIA over Intel or AMD? Both are far ahead of the game when it comes to processing power, but HP was more interested in efficiency; they wanted to create a ‘green’ machine that could only be achieved using VIA’s processor with market leading efficiency.

HP was recently criticized by the environmental group, Greenpeace, when scientists’ analysis of an HP laptop revealed the presence of decaBDE, a type of brominated flame retardant that HP claimed it no longer used.

A couple months later, Greenpeace compiled a list of the most environmentally friendly semiconductor companies; China’s leading PC vendor, Lenovo Group Ltd, topped the list.

HP may be looking to gain points with Greenpeace, as their new PC has achieved certification by the CECP, the China Government’s key energy rating agency, for its highly efficient operation.

VIA has won big with their C-7D processor while the gap is slowly closing in performance with the AMD and Intel chips. This is partially due to the efficiency of the processor, as it’s not restrained by thermal symptoms.

The Compaq dx2020, based on Via’s 1.5GHz C-7D processor, consumes only 20 watts of power, and combines superior efficiency per watt by using DDR2 system memory, Serial ATA hard drive, and USB2.0.

“We are delighted that HP have selected the VIA C7-D desktop processor to create this excellent value proposition,” said Wenchi Chen, President and CEO, VIA Technologies, Inc. “The HP Compaq dx2020 represents a great opportunity for many more Chinese businesses of all sizes to upgrade their operations while minimizing their power costs and environmental impact

Aside from the processor, which is clearly a big deal for VIA Tech, the HP Compaq dx2020 uses the VIA Digital Media chipset combined with a VIA UniChrome Pro II integrated graphics processor. While HP’s green machine will be available only in China, its success may lead it to other markets, including the US.

It may seem as if Intel and AMD are looking at VIA as a tiny dot, with VIA-based systems accounting for just 0.12 percent of China’s PC market in 2006 according to IDC, but that was before one of China’s ‘big boy’ vendors decided to offer an attractive alternative.