Kolkata: Intel and Advanced Micro Devices (AMD), traditional rivals in the global chipset space, are now set to take each other on in the $300-million Indian graphics card market.

With the country turning out to be a hub for graphic industries like animation and design, both the companies are reworking their India strategies to grow their businesses in the computing segment.

The move has been triggered by the emergence of high-end games involving real-time 3D rendering (such as first person shooting or racing games). A FICCI-KPMG study claims the Indian animation industry alone will grow from the current Rs 17.4 billion to Rs 39 billion by calendar 2013.

Global and domestic entertainment companies like DQ Entertainment, Yashraj Films, Disney, MGM and Paramount have announced that they will tap the Indian market through locally-produced animation and graphics content.

Such heavy-duty content development requires standalone or discrete graphic cards, as against integrated graphics chipset (essentially graphic capabilities within the computer motherboard). Integrated graphic chipsets are best suited for basic applications like multimedia, high-definition videos, photos and digital music.

It is in the standalone space that Intel looks to grow, hoping in the process, to replicate its market leadership in the integrated segment. To begin with, it plans to roll out next-generation graphic products and solutions, code-named ‘Larrabee’, in India next year. It is also developing a new microarchitecture on its existing platform. "The new products will open up a world of opportunity for both mainstream programming and graphic applications," Intel South Asia director (sales) R Ravichandran told ET.

Arch rival AMD plans to significantly grow its market share in the professional segment, and is working on a strategy to develop a product which will marry high-end computing and graphics in a single chip. This product is currently under development in AMD’s R&D facilities in Bangalore and Hyderabad.

AMD, in turn, plans to grow its share in the professional graphics card market by three to four times from the current 10% by 2010. AMD India VP (marketing and sales) Ramkumar Subramanian said the company has outlined a clear-cut strategy to take on Intel. "Apart from rolling out newer products, we will tie up with software vendors and potential clients," he said.

Mr Subramanian added AMD has already tied up with frontline animation and multimedia firms like Big Animation, MACC and FXLabs. "AMD will make strategic investments in India to develop and grow the graphic cards business. While we are already the leader in the consumer segment, we do not want to miss out on the next big opportunity that lies in the professional segment," he added.

If anything, the competition has begun. Market trackers claim it is ultimately consumers who will benefit, since whenever Intel and AMD have locked horns to prise open a new business turf, it has resulted in a faster launch of new technologies at compelling price-points.