Toshiba is the fourth-largest notebook computer manufacturer in the world, and the deal should give AMD a much needed financial injection.
"It is generally good practice for a major company such as Toshiba, which is a strong presence in the laptop area, to have dual sources," said Derek Lidow, chief executive at analyst firm iSuppli. "It reduces the risk in supply chain and creates more competition."
Toshiba will use AMD processors in some of its mid-range notebooks aimed at the US and European markets, and the move should allow the firm to reduce the cost of components by around 10 per cent.
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