China agreed Thursday to manufacture locally designed computer processors and form a group to set standards for locally made supercomputers, the South China Morning Post reported. The mainland will produce computer processors in partnership with STMicroelectronics, an Italian-French firm in an effort to take market share from Intel and Advanced Micro Devices (AMD). The agreement with the Insitute of Computing Technology at the Chinese Academy of Sciences would see STMicro produce the Loongson 2E chip. Meanwhile the Chinese Electronics Standardization Association will look at standards on the manufacture of supercomputers. A new sub-commitee will seek to help mainland computer manufacturers become world-class suppliers of high-powered computers, the newspaper reported.