Via Technologies, a struggling developer of central processing units and core-logic sets from Taiwan, has inked a contract with HP under which the semiconductor design house will supply its C7-D central processing units (CPUs) and supporting chipsets to HP for a commercial PC targeting Chinese market.

HP Compaq dx2020 is based on Via C7-D 1.50GHz desktop processor and Via CN700 chipset. The systems may be equipped with up to 1GB of single-channel DDR2 memory, up to 160GB Serial ATA-300 hard disk drive and other components vital for computer’s functionality. It is unknown what operating system is used on the system. Besides, its price is also not unveiled.

“It is vital that companies across China, not just in the largest cities, gain access to the vast productivity, efficiency and online resource benefits of IT and the Internet,” said Wenchi Chen, president and chief executive at Via Technologies.

Since Via’s C7-D processor consumes maximum of 20W of power and due to low power consumption of Via CN700 core-logic that also includes built-in graphics core, the Compaq dx2020 system may be considered as an example of environmentally friendly personal computer, according to Via.

“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, and we are delighted that HP have selected the Via C7-D desktop processor to create this excellent value proposition,” Mr. Chen added.

Given that China is currently ranked as the world’s second largest market for personal computers, Via’s design win may turn out to be very significantly for the company, whose sales has remained at relatively low level in the past five years. However, even the low-end desktop market in China seems to be pretty competitive: last month Dell unveiled a $335 PC targeting the same market segment as HP’s dx2020. Lenovo, China’s largest PC maker, and HP also have AMD-based models priced around $388 in China, notes EETimes web-site.