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Low-cost chip is made for China

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A new computer chip embedded with the Linux operating system may change the way computers in the mainland are defined.

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The V-Dragon, developed by Hong Kong-based Culturecom, is a 400-megahertz PowerPC processor embedded with the Midori Linux operating system and Chinese character generation technology.

Culturecom has so far invested $400 million in developing the chip.

Company chairman Frank Cheung Wai-tung believes the new chip may help replace costly Wintel systems in the mainland.

'Cost savings are expected to be approximately 70 per cent,' he said.

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Mr Cheung said this was achievable because 50 per cent to 70 per cent of the manufacturing cost of a typical PC went on licence fees to Microsoft and Intel.

Intel chips account for nearly 90 per cent of the mainland PC market, while Windows, often pirated, accounts for the most PC-based operating systems.

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