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AMD is based in Sunnydale, California. California is not now, nor has it ever been a part of Germany.
Intel's problems did not start with the Pentium 4. The design of the Pentium 4 was motivated by marketing: because consumers judged CPUs by clock speeds, they sacrificed speed and power for high clock speeds. The early 1.5 GHz Pentiums 4s were, if I recall correctly, slower than the 1.0 GHz Pentium 3s.
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