x86 Monthly News

Collected By Robert R. Collins

January 1998

 

 
Updated January 30, 1998

Intergraph: Intel fray causes loss

By Reuters

January 30, 1998
C/Net

Intergraph (INGR) said yesterday that a legal dispute with computer chip giant Intel (INTC) over patent infringement had hurt its operating results for the fourth quarter.

Intergraph, which makes computer graphics systems, reported a net loss of 43 cents per share against a net loss of 71 cents for the same period a year ago. The year-ago figure included a 21-cents-per-share charge for the write down of specific assets, it said.

Related Stories

Despite suit, Intergraph wants its Pentium IIs

Intergraph and Intel in legal flap

Text of the lawsuit

Direct Rambus price tag raises questions

By Anthony Cataldo

January 30, 1998
EE Times

What will it cost a PC OEM to convert from 100-MHz SDRAMs to Direct Rambus DRAMs, as prescribed by Intel Corp? The question was one of the main topics of discussion at DesignCon98, as news spread about Intel floating a new SDRAM specification, ostensibly to ease the transition.

Rambus Inc. (Mountain View, Calif.) maintains that Direct RDRAMs, which are scheduled to begin sampling in 64-Mbit densities in the second half of the year, will be 5 percent to 10 percent more expensive than SDRAM-100 parts, which are expected to roll out by the second quarter. Those SDRAMs are expected to be coupled with Intel's 440BX chip set for Pentium II systems.

 

All Wintel, all the time

By Jai Singh

January 30, 1998
C/Net

Life is full of choices, they say, but not if you live on the computing planet.

To be sure, everyone ascribes to the notion of choice. Users demand it. Lawmakers legislate it. Regulators enforce it. Even vendors want it, sort of. Their interpretation of the word depends on which side of the computing platform one stands.

 
Updated January 29, 1998

Sony Unimpressed By 333-MHz Chip

By Kristen Kenedy

January 28, 1998
Computer Retail Week

Sony Electronics will not add a 333-MHz system to its lineup of Vaio PCs, a spokesman for the company told Computer Retail Week.

"An 11 percent increase in performance doesn't seem that big of a sell to customers," the spokesman said. Sony offers systems based on Intel 200-MHz, 233-MHz, 266-MHz, and 300-MHz CPUs.

However, Sony is eyeing the sub-$1,000 market, where sales have spiked, he said. The company is developing a low-cost PC that will provide customers with the performance expected in today's market, the spokesman said, but Sony has not announced a ship date for such a system.

 

AMD reacts to Intel, cuts prices

By Michael Kanellos

January 28, 1998
C/Net

Advanced Micro Devices this week reduced chip prices in reaction to price cuts from market leader Intel.

AMD has vowed to keep its processors at 25 percent below the nearest Intel equivalent. With these cuts, the Sunnyvale, California, company maintains its promise.

Under the new pricing structure, the 233-MHz version of the K6 will sell for $145, down 44 percent from $225, according to AMD spokesman David Frink.

Related Stories

Intel gets serious about low-cost chips

Intel cuts chip prices

Intel readies low-cost Pentium II

Intel gets serious about low-cost chips

By Michael Kanellos

January 28, 1998
C/Net

Intel (INTC) will release its Pentium II for sub-$1,000 consumer PCs in April, turning up the heat in the low-cost chip market, currently a three-way slugfest between Intel, Advanced Micro Devices, and Cyrix.

The chip, code-named Covington, is a "cacheless" Pentium II processor, meaning that Intel has eliminated the extra, pricey memory currently built into Pentium II chips. One of the first vendors to adopt the chip will be Compaq.

Related Stories

AMD reacts to Intel, cuts prices

Fastest systems priced to move

Deschutes Debuts
Intel brings its first 0.25µ desktop CPU to market.

By Cade Metz and Patrick Norton

January 26, 1998
PC Magazine

Get your good-byes in now: This may be the swan song of Intel's 66-MHz system bus. The first Deschutes processor, a 333-MHz incarnation of the Pentium II announced in January, is likely to be the last new high-powered desktop CPU to use a memory bus any slower than 100 MHz. Manufactured on a 0.25µ process, the chip has a higher core frequency and a smaller die than its predecessors, but it is still subject to the more than four-year-old bus bottleneck (which should be alleviated with subsequent Deschutes designs later in the year). In the following pages, we review eight inaugural 333-MHz systems: four so-called professional enthusiast PCs with Microsoft Windows 95 and four managed corporate machines running Windows NT 4.0. PC Labs tests eight 333-MHz Pentium II PCs running Windows 95 and Windows NT 4.0.
Updated January 28, 1998

Digital chip sale to Intel at risk

By Reuters

January 28, 1998
C/Net

Compaq Computer's (CPQ) buyout of Digital Equipment (DEC) could imperil an earlier deal between Digital and Intel (INTC), according to reports.

Late last year, Digital agreed to sell a chip-making plant and production rights to its ultrafast Alpha processor to Intel for a package valued at $1.5 billion, including $700 million in cash. That deal is still under review by federal antitrust enforcers.

 

CPU clone-makers wrestle with X86 compatibility

By Alexander Wolfe

January 27, 1998
EE Times

Verifying the compatibility of an X86 clone processor is harder than it appears, according to industry experts.

Every new clone CPU must be tested to ensure that it can actually execute the entire X86 instruction set without any bugs or unexpected side effects. But engineers working toward this goal face one big stumbling block, according to Michael Slater, principal analyst at MicroDesign Resources (Sebastopol, Calif.).

"The problem is the X86 architecture has never been a properly defined architecture," said Slater. "It's been an implementation, a de facto standard."

Related Stories

Merced grips Intel in verification vise

333-MHz Pentiums "Officially" Arrive

By Roger C. Lanctot

January 27, 1998
Computer Retail Week

Intel's official launch of the 333-MHz Pentium II-based PCs came Tuesday without much fanfare in the channel, given that retailers such as Best Buy, Computer City SuperCenters, CompUSA, and Sun TV & Appliance have been selling the systems since Christmas.

OfficeMax, Best Buy, and Circuit City Stores didn't advertise any 333-MHz systems in their newspaper circulars last weekend, complying with an ad embargo date of Jan. 26.

 

Intel Price Cuts And New Processors Proliferate

By Mark Harrington

January 27, 1998
Computer Retail Week

As it introduces its fastest microprocessor to date in the 333-MHz Pentium II, Intel is discussing a complex rollout schedule for new processors and price changes through August.

The 333-MHz Pentium II, officially announced Monday, is the first using a 0.25-micron manufacturing process that allows for increased core frequencies and reduced power consumption, Intel said. Manufacturers such as Compaq put 333-MHz product on retail shelves well before the introduction and were ready for Intel's announcement.

 

Intel readies low-cost Pentium II

By Michael Kanellos

January 27
C/Net

Intel (INTC) is expected to release its Pentium II for sub-$1,000 consumer PCs in April, setting the stage for a raft of new home computers based on Intel's fastest chip architecture.

The chip, code-named Covington, is a "cacheless" Pentium II processor, meaning that Intel has eliminated the extra, pricey memory currently built into Pentium II chips. One of the first vendors to adopt the chip will be Compaq.

 

Intel slashes chip prices

By Robert Lemos

January 28, 1998
ZDNN

PC chip giant Intel Corp. trimmed mainstream desktop processor prices up to 42 percent on Tuesday, and slashed prices on its mobile offerings by up to 51 percent.

The cuts -- a quarterly ritual for the Santa Clara, Calif., company -- left the mainstream 200MHz Pentium MMX processor 42 percent lower at $123 in 1,000-unit quantities.

 
Updated January 27, 1998

333: Pentium II, the Third
What Intels new Pentium II processor 'Deschutes' offers

By Georg Schnurer

January 26, 1998
C'T

With the 333 MHz model introduced on January 26, Intel is sending the third version of the Pentium II into the race. With a few changes to the new processors details, it is supposedly cheaper to manufacture than its predecessor and runs faster, too. But as usual, being economical demands a small renunciation in another area.

The main data of the 'Deschutes', as Intel calls the new Pentium II processor internally, are quickly told: the processor core is not manufactured in 0,35-mm technology anymore, but in the more refined 0,25-mm process. This means that the manufacturer can produce more chips from one wafer, increasing the yield and thus lowering the costs. At the same time it also allows higher clock frequencies: Finer structures translate into a better distance between the interference voltage, enabling to lower the voltage supply (VCore) from presently 2,8 to 2,0 Volts. On the other hand this results in a lower power usage and therefore also reduces dissipation and heat generation.

 

Intel reconsiders Rambus transition

January 26, 1998
CMP Net

Intel Corp. may be rethinking its plan of shifting the PC industry to Rambus-Direct DRAMs. Sources told EE Times that Intel is developing a memory-interface spec, reportedly called P133L, that will support both Rambus-Direct and synchronous DRAMs. It was unclear whether the spec would include double-data-rate SDRAMs. The interface was said to be under development for an unannounced core-logic chip set.

Intel would not comment directly on the report. But a company spokesman said, "We are looking at ways to make a smooth transition from SDRAM to Rambus-Direct. The impetus is to make sure there are no hiccups that would prevent a higher-performance platform from getting to the end user."

 

Merced may spell more Unix turmoil

By R. Scott Raynovich

January 26, 1998
LAN Times

Almost every major Unix operating system vendor wants a piece of Intel Corp.'s forthcoming 64-bit chip, code-named Merced.

The development of Merced, the first in a new 64-bit CPU family known as Intel Architecture 64 (IA-64), could give Unix vendors fresh opportunities to compete with Microsoft Windows NT and dip into the phenomenal success of Intel's aggressive price/performance strategy. However, industry observers say that the development of new operating systems for IA-64 is likely to generate turmoil for customers by further fragmenting the Unix operating system market.

 

Intel cuts chip prices

By Jim Davis

January 26, 1998
C/Net

Intel (INTC) today rolled out its fastest processor to date, but more importantly for the PC industry, the company is expected to speed up price reductions on processors in the coming year.

During 1998 Intel cut processor prices fairly steadily. But this year the pace may well accelerate as Intel rolls out new products to fill the need for processors that can be used in popular sub-$1,000 PCs. Even before next quarter's full round of price cuts, Intel is expected to reduce the price on its newest processor, according to analysts.

 

Intel Buyout Of Chips And Technologies Almost Final

By Kelly Spang

January 23, 1998
Computer Reseller News

Little more than a week after the U.S. Federal Trade Commission (FTC) announced it wouldn't block Intel's acquisition of Chips and Technologies, the chip giant has completed its tender offer.

By Jan. 31, Intel said it expects to complete the acquisition of remaining shares of Chips and Technologies by merging the San Jose, Calif., graphics chip maker into Intel Enterprise.

 

Intel plans to finish Chips acquisition

Staff Reporter

January 26, 1998
Semiconductor Business News

With the completion of its tender offer for outstanding shares of Chips and Technologies Inc., microprocessor giant Intel Corp. here plans to complete its acquisition of the San Jose company by Saturday, Jan. 31.  

Intel attacks low-cost PC from all angles

By Lisa DiCarlo

January 26, 1998
PC Week Online

Intel Corp. is continuing its vigorous attack on the low-cost PC market, not just with its cornerstone microprocessor but also with complementary chip sets and motherboards.

In the third quarter, Intel plans to deliver a low-cost chip set, called the 440LX-R, that will include limited functionality to help reduce system design costs, said sources close to the Santa Clara, Calif., company.

 

New Pentium II, price cuts arrive

By Michael Kanellos and Jim Davis

January 26, 1998
C/Net

Intel (INTC) will debut its second-generation, "Deschutes" Pentium II today, while it cuts prices on its chips. Some computer manufacturers are reducing prices on systems also.

The release of the Deschutes Pentium II paves the way for personal computers that will reach a new level of high performance at the lowest price-performance points in PC history, reflecting a sea change in the industry's pricing structure.

 

Merced grips Intel in verification vise

By Alexander Wolfe

January 26, 1998
EE Times

The rustic setting at Intel's Jones Farm Campus, here, belies the feverish activity under way inside the facility's semiconductor validation laboratory. Buffeted by the disclosure of two Pentium-related bugs last year--and with lingering memories of the infamous Pentium FDIV floating-point flaw of 1994--Intel in recent months has dramatically increased its efforts to develop improved techniques to stamp out glitches before microprocessor designs hit the fab lines, according to  

Intel’s Merced: Backers and Boycotts
Sun is holding out with its workstations, refusing to back Intel-based systems.

By Sebastian Rupley

January 16, 1998
PC Magazine

As Intel ramps up for next year’s release of the IA-64 Merced chip, the company is gaining support from important backers in the workstation arena, but there is one notable holdout: Sun Microsystems. Although Sun has made a software commitment to the Merced platform with its Solaris operating system, the company has decided to eschew Merced in its hardware efforts. Related Stories

64-Bit Breakthrough

Updated January 23, 1998

"Deschutes" Pentium II to debut

By Michael Kanellos and Jim Davis

January 23, 1998
C/Net

Intel (INTC) will debut its second-generation, "Deschutes" Pentium II on Monday, paving the way for personal computers that will reach the highest performance standards yet, at the lowest price-performance points in PC history, reflecting a sea change in the industry's pricing structure.

The next Pentium II will cost less than $700 for large-volume purchasers, a low introductory price compared to past high-end Intel chips, mirroring the free-fall in chip and PC prices at other end of the market spectrum, where sub-$1,000 systems are becoming increasingly commonplace.

 

Intels Route 98: From Issos to Mendocino

By Andreas Stiller

February, 1998
C'T

Instead of the expected rod Santa Claus from Santa Clara actually brought us a present, the Deschutes in form of a Pentium-II-333, that is supposed to be launched on January 26.

We baptized the first representative of the Pentium-II family in 0,25-µm technology Issos, because of its 333 MHz. It will be interesting to see how it survives the brawl with the competition, whose 0,25-µm K6-266 already did some trial rounds in our lab.

This year commander Andrew the Grove must still fight many battles. For example with the Federal Trust Commission, that is not only a pain as far as the Chips & Technology takeover is concerned (the actual date for the transaction has now been postponed for the fifth time), but also might veto the deal with Digital.

 

Leave Microsoft alone

By Alexander Wolfe

January 22, 1998
EE Times

I could go on and on, but you get the point. Indeed, in the software world, there's just no case to be made that users are locked into Bill Gates's vise grip.

Contrast that to the situation on the hardware side of the desktop-computing business. There's the Intel architecture and there's the . . .uh, Intel architecture. As an alternative, of course, there's the Intel architecture. (Sparc, MIPS, Alpha and PowerPC are among the competing microprocessors, but I would argue that they are mainly factors in workstations or embedded applications, not the desktop.)

 
Updated January 19, 1998

Intel ad subsidies raising eyebrows

By Michael Kanellos

January 16, 1998
C/Net

A multimillion-dollar advertising program from Intel (INTC) is heating up the debate on where journalism ends and advertising begins on the Web.

At the center of the debate is the "Intel Inside Optimized Content" program, a four-month-old campaign that essentially provides additional revenues to Web publishers that create special pages touting the performance benefit of the Pentium II processor.

 

Next Pentium II due this month

By Michael Kanellos

January 16, 1998
C/Net

At the end of this month, Intel's (INTC) second-generation Pentium II processor will appear in the fastest breed of PCs, heralding a new level of high-performance personal computing.

The new Pentium II chip, dubbed Deschutes, initially will be targeted at desktop and server computers and is expected to be introduced at a speed of 333 MHz this month. Meanwhile, the first Pentium II designed for notebook PCs--to date limited to the aging Pentium processor--will be released by summer, according to sources familiar with both announcements. Notebook versions will be introduced at a speed of 233 MHz.

 

Intel's Deschutes chip gets major vendor backing

By Karen J. Bannan

January 16, 1998
PC Week Online

In two weeks Intel Corp. will unveil its 333MHz Pentium II processors with a 66MHz bus to a chorus of new servers from nearly every major systems vendor.

The new Pentium, code-named Deschutes, is targeted for desktop systems to midrange servers and is the first in a line of chips designed for specific systems.

 
Updated January 16, 1998

Does "Intel Inside" Matter?

By Fred Langa

January 14, 1998
CMPNet

I depend on my PCs for my livelihood. That ol' FUD factor -- Fear, Uncertainty, Doubt -- made me hesitant to try anything other than genuine Intel CPUs. What if a non-Intel CPU had some subtle internal weirdness that hosed my work? Ulp!

Then I got the upgrade bug, which led me to try some clock-doubler and -tripler upgrade kits on some older, nonessential 486-based systems. The upgrade kits used 486-class chips from AMD and Cyrix, and they worked great, extending the lives of systems that otherwise were headed for resale or the parts bin. The non-Intel upgrades worked so well I had a major "hmmmm" moment in thinking about my pro-Intel bias.

 

Pentium II prices to continue downward

By Michael Kanellos

January 15, 1998
C/Net

Desktop and processor prices are nowhere near rock bottom, analysts say, and will continue on their downward trajectory because of upcoming innovations and product shifts from Intel (INTC) as well as a more competitive marketplace.

Although the company said that its overall profit margins would decline to 55 from 60 percent next year in a conference call with analysts yesterday, observers believe that the company has more room for price movement than the projected decrease might indicate.

 

New MMX on Intel Katmai chip

By Michael Kanellos

January 15, 1998
C/Net

Intel (INTC) will ship a new processor technology dubbed Katmai in 1999, designed to boost a computer's ability to handle multimedia and run at speeds starting at about 500 MHz, company executives revealed.

The Katmai technology was formerly known as "MMX 2" and essentially represents the next phase in Intel's visual computing strategy, which makes PCs much like the powerful workstation computers of today, which are adept at handling 3D graphics, full-motion video, and speech recognition.

 

Taiwanese Readying Intel Deschutes -Based Notebooks

By Mark LaPedus

January 15, 1998
Electronic Buyers News

Several Taiwan notebook makers here in Taipei have jumped the gun, announcing products based on a yet-to-be-introduced mobile version of Intel Corp.'s Pentium II chip, codenamed Deschutes.

Acer Inc., Clevo Co., Twinhead International Inc., and other Taiwan notebook makers this year will ship products based on Deschutes, a Pentium II-level chip that will come in 233-, 266-, and 300-MHz speed grades. Processor prices range from $500 to $900, depending on the product, sources said.

 

Intel to air spoof for Super Bowl

By Michael Kanellos

January 15, 1998
C/Net

Intel (INTC) will combine TV viewing and Web browsing in Super Bowl ads promoting its Pentium II chip.

The ads, which will air during the second and fourth quarter of the game, will follow the conventions of a whodunit.

 
Updated January 15, 1998

Intel Katmai chips due in 1999

By Michael Kanellos

January 14, 1998
C/Net

Intel will ship a new processor technology dubbed Katmai in 1999, designed to enhance complex applications such as 3D graphics and speech recognition and run at speeds starting at about 500 MHz, company executives revealed today.

The Katmai technology was formerly known as "MMX 2" and essentially represents the next phase in Intel's visual computing strategy. Like MMX, Katmai is a series of instructions incorporated into Intel processors, said Richard Dracott, marketing manager for Intel.

 

Intel Aims Katmai At Corporate Market

By Kelly Spang

January 14, 1998
Computer Reseller News

Intel's next-generation processor, code named Katmai, will not drastically differ from the form factor of the successful Pentium II, but will be aimed, from the start, at the corporate market.

The Katmai processor, which was announced today, is scheduled to ship in the first half of 1999 and will be part of the Pentium II architecture. Katmai chips include 70 new instructions to extend the current capabilities of MMX. By the end of 1998, the Pentium II will top out at 450 MHz, so it is likely that Katmai will come in at speeds upwards of 500 MHz.

 

Intel sheds light on forthcoming 'Katmai' processors

By Lisa DiCarlo

January 14, 1998
PC Week Online

Intel Corp. today disclosed some technical details about the processor family, code-named Katmai, that will surface in the first half of 1999.

The 32-bit chips will incorporate 70 new MMX instructions that improve floating-point and 3D-intensive application performance, as well as next-generation technologies such as natural-speech recognition and other human interface types.

 

Intel Discloses MMX-2 As AMD, Cyrix Unite

By Mark Hachman

January 14, 1998
Electronic Buyers News

Putting an end to industry speculation, Intel Corp. disclosed that the Katmai processor in 1999 will feature the successor to Intel's existing MMX technology.

The announcement forced Advanced Micro Devices Inc. and Cyrix Corp. to disclose that they, too, had unified on their own separate multimedia instruction standard, a hybrid set combined from both companies. Centaur Technology Inc., a subsidiary of Integrated Device Technology Inc., has reportedly agreed to support the alternative standard.

 

AMD Makes High-Risk Gamble

By Steven Burke

January 14, 1998
Computer Reseller News

After posting a loss of $12.3 million for the latest quarter, Advanced Micro Devices (AMD) CEO Jerry Sanders warned Wall Street analysts that the company is embarking on a no-holds-barred high-risk strategy to quickly improve 0.25-micron yields on its hot-selling K6 processor.

"We have commenced our program to ramp 0.25-micron K6 wafer product in Fab 25 at the fastest practical rate," said Sanders. "This is a high-risk strategy in that we have not yet demonstrated the yield in Fab 25 for 0.25 microns. ... The first significant 0.25-micron shipments in Fab 25 will not occur before March."

 

Non-Intel processors make gains

By Michael Kanellos

January 14, 1998
C/Net

Intel not inside appears to be a growing phenomenon in the retail world.

Consumer mania for sub-$1,000 computers drove up sales and market shares for computers powered by processors from Advanced Micro Devices and Cyrix at the end of 1998. While it remains to be seen whether the trend will continue, recent design wins by these companies and computer pricing trends seem to indicate that the Intel alternatives will continue to find a place on store shelves.

 

Sun to pass on Merced, will stick with Sparc

By Alexander Wolfe

January 15, 1998
EE Times

Despite industry speculation about a possible long-term tilt toward Intel's 64-bit Merced architecture, Sun Microsystems Inc. last week emphatically insisted it will stick with its Sparc RISC processor family now and in the future. Moreover, Sun said it will remain committed to Unix and won't make a move to the increasingly popular Windows NT operating system--something many of its workstation competitors have done.

"We have no intention to ever use an Intel microprocessor as the basis of our platform," said Robert Novak, group manager for desktop workstations at Sun. "In addition, we will not be putting Windows NT on the Sparc machine."

 

Intel Forms Architecture Group

By Patrick Waurzyniak

January 14, 1998
Electronic Buyers News

Intel Corp., Santa Clara, Calif., on Wednesday said it had formed the Intel Architecture (IA) Business Group, a new business unit that will be headed by Intel executive vice president Paul S. Otellini.

Otellini, who will be responsible for managing all Intel architecture roadmaps, strategies, and resources between Intel's Business Platform Group, the Consumer Products Group, the Mobile/Handheld Products Group, and the Enterprise Server Group, will continue to report to Intel's Executive Office, the company said.

 

Intel's 4Q Margins Decline, But Earnings Exceed Estimates

By Mark Hachman

January 14, 1998
Electronic Buyers News

A drop in gross margins helped push down Intel Corp.'s profits by nearly 9% in the final quarter of 1998, despite strong sales of the company's newest processors.

Intel reported a net income of $1.7 billion for the three months ended Dec. 27, down from the $1.9 billion it posted during the same period a year ago. But revenues once again set a new record, climbing to $6.5 billion from $6.4 billion. First quarter 1998 revenues should be approximately flat, however, executives said.

 

Intel shares dip as future concerns grow

By Margaret Kane

January 14, 1998
ZDNN

Intel Corp. may have beaten estimates when it turned in fourth-quarter results last night, but analysts today weren't as optimistic about the company's future.

The Santa Clara, Calif., company's stock was off $2.19 to $74.75 in midmorning trading after several analysts revised their estimates for Intel's 1998 earnings.

 
Updated January 14, 1998

FTC won't block Intel's acquisition of C&T

By Margaret Kane

January 13, 1998
ZDNN

The Federal Trade Commission will not try to block Intel Corp.'s $420 million acquisition of Chips and Technologies Inc., the agency said today in a statement.

However, the FTC plans to continue to investigate the deal because of concerns about Intel's dominance of the chip market.

 

FTC clears way for Intel's 3-D graphics bid

By Rick Boyd-Merritt

Januar 14, 1998
EE Times

The Federal Trade Commission cleared the way for Intel Corp. to enter the 3-D and graphics markets on Tuesday, when the commission ruled it would not seek a preliminary injunction to block Intel's planned acquisition of graphics-chip maker Chips and Technologies Inc. (San Jose). Intel co-developed its initial entry into this market-the i740 3-D graphics accelerator--with C&T and Real 3-D, a unit of Lockheed Martin. Intel has widely previewed the chip in private meetings at Siggraph and Comdex/Fall last year, but in the wake of the FTC investigation has yet to launch the accelerator.  

Intel Gets Fed's Preliminary OK On C&T Deal

By By Mark Hachman

January 13, 1998
Electronic Buyers News

Intel Corp.'s pending acquisition of Chips and Technologies Inc. has been granted a preliminary approval by the Federal Trade Commission.

However, because of concerns about the acquisition's impact in markets "for certain computer components", among those graphics chips, the FTC will "continue the investigation into the lawfulness of the acquisition."

 

FTC won't fight Intel's Chips acquisition

Staff Reporter

January 13, 1998
Semiconductor Business News

Intel Corp. here today said the Federal Trade Commission has informed the company that it will not seek a preliminary in the Intel's acquisition of Chips and Technologies Inc.

For more than four months, the FTC probe delayed completion of Intel's tender offer for Chips and Technologies stock. Intel said it plans to end its $17.50 per share tender offer at 8 p.m. EST on Jan. 21.

 

Intel To VARs: Caveat Emptor
Selling 333 MHz chip may violate NDA

By Kelly Spang

January 12, 1998
Computer Reseller News

While the formal launch of the Pentium II 333MHz is more than two weeks
away, VARs are seeing limited availability of the CPU already in the open
market.

Intel Corp., however, warns VARs they will "get what they pay for" if they buy these processors. "We have heard 333MHz (Pentium II CPUs) are out there, but we aren't sure where they are coming from," said an Intel spokesman. "Anyone distributing (these processors) is in violation of their NDA."

 

Fastest Pentium II on the way

By Jim Davis

January 14, 1998
C/Net

Intel (INTC) is expected to release the fastest of its fastest chips later this month but don't hold your breath for any major performance gains. That will come later when Intel modifies a core part of the intercomponent "plumbing" for the Pentium II.

The newest Pentium II, expected to be officially announced at the end of this month, will reach a top speed of 333-MHz, up from 300 MHz, as an Intel executive indicated yesterday : "We [have begun] volume shipments of the 333 MHz version of this product in anticipation of its introduction later this month," Paul Otellini, executive vice president director at the Sales and Marketing Group, said yesterday.

 

Intel's Earnings Exceed Estimates

Staff Reporter

January 13, 1998
Electronic Buyers News

A drop in gross margins pushed down Intel Corp.'s profits by more than 10% in the final quarter of 1998, despite strong sales of the company's newest processors.

Intel reported a net income of $1.7 billion for the three months ended Dec. 31, well down from the $1.9 billion it posted during the same period a year ago. But revenues once again set a new record, climbing to $6.5 billion from $6.4 billion.

 

Intel blows away Q4 estimates

By Larry Barrett

January 13, 1998
ZD Inter@Ctive Investor

Intel Corp. (INTC) shattered even the most optimistic earnings projections in its fourth quarter, posting a profit of $1.7 billion, or 98 cents per share, on record sales of $6.5 billion.

First Call consensus expected the world's largest chip maker would report a profit of 90 cents per share in the quarter.

 

Intel earnings better than expected

By Dawn Yoshitake

January 13, 1998
C/Net

Intel (INTC) posted stronger-than-expected fourth-quarter earnings today as shipments of its microprocessors hit a record and price stability returned to its flash memory market.

The chip giant, which today also announced that federal regulators would not contest its merger with graphics chip accelerator Chips and Technologies, said demand for its Pentium II and Pentium with MMX technology lines was strong.

Related Stories

Chipmakers face ailing quarter

Intel restructures operations

Intel's weak results affect markets

Intel expects flat growth in Q1 after record sales, profits in '97

Staff Reporter

January 13, 1998
Semiconductor Business News

Intel Corp., reporting record sales of $25.1 billion and net income of $6.9 billion for 1998, said today that it expects revenues to be flat in the first quarter 1998, compared to the final three months of last year.

In the fourth quarter last year, Intel's revenues reached a record $6.5 billion, up from $6.4 billion during the same period in 1996. Its net income in the fourth quarter declined 10.5% to $1.7 billion compared to $1.9 billion in the previous year.

 

Intel Easily Hurdles Wall Street Estimates

By Larry Dignan

January 13, 1998
TechInvestor

Intel easily hurdled Wall Street estimates Tuesday with fourth quarter earnings of $1.74 billion, or 98 cents a share.

Wall Street was expecting earnings of 90 cents a share.The results were a welcome dose of good news for technology stocks, which have been battered lately.

 

AMD beats estimates

By Margaret Kane

January 13, 1998
ZDNN

Advanced Micro Devices Inc. may have lost $12 million during the fourth quarter, but that wasn't as bad as analysts were expecting.

The company this afternoon said it pulled in $613 million in sales during the quarter, up 23 percent from a year ago. The $12 million loss is also a step up from a year ago, when the company lost $21 million. At 9 cents per share, it's also less than the 14-cents-per-share loss analysts expected.

 

AMD Cites Poor K6 Yields In Disappointing 4Q

By Mark Hachman and Matthew Sheerin

January 14, 1998
Electronic Buyers News

If buyers found Advanced Micro Devices Inc.'s fourth quarter earnings unnerving, its first quarter 1998 could keep them on the edge of their seats.

Citing continued poor production yields on its K6 microprocessor, Advanced Micro Devices Inc. Tuesday reported a net loss of $12.33 million, or 9 cents a share, on sales of $613.17 million for the fourth quarter of 1998. In the prior-year quarter, the company posted a net loss of $21.24 million on revenue of $496.87 million. The net loss was actually lower than analysts' estimates of a 15-cent loss per share.

 

AMD meets goals, narrows losses

By Michael Kanellos

January 13, 1998
C/Net

Advanced Micro Devices met its goal of shipping approximately 1.5 million K6 microprocessors during the fourth quarter, and narrowed its losses to boot--giving Wall Street a much better performance than expected.

Despite the better-than-expected quarter, AMD executives warned that the first quarter will present a crunch for the company as it shifts away from its ".35" manufacturing process to the ".25" manufacturing process.

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AMD Posts $21M Quarterly Loss

By Matthew Sheerin

January 13, 1998
Electronic Buyers News

Citing continued poor production yields on its K6 microprocessor, Advanced Micro Devices Inc. Tuesday reported a net loss of $12.33 million, or 9 cents a share, on sales of $613.17 million for the fourth quarter of 1998.

In the prior-year quarter, the company posted net loss of $21.24 million on revenue of $496.87 million.

 

AMD Exceeds Wall Street Expectations

By Gabrielle Jonas

January 13, 1998
TechInvestor

Advanced Micro Devices (AMD) surprised Wall Street Tuesday by turning in a smaller-than-expected fourth quarter loss.

AMD lost $12.3 million, or 9 cents a share, in the fourth quarter. Wall Street was looking for a loss of 14 cents a share. In the same quarter a year ago, AMD lost $21.2, or 15 cents a share.

 

Cyrix's New Chip Processing: Higher Frequency, Channel Availability

By Kelly Spang

January 13, 1998
Computer Reseller News

National Semiconductor, which merged with Cyrix in November, announced today that it produced the first 6x86MX processors based on .25-micron technology.

By mid-year, the Cyrix 6x86MX processor line will be produced with .25-micron technology, increasing channel availability in 1998, company officials said.

 
Updated January 13, 1998

National making first Cyrix chips

By Michael Kanellos

January 12, 1998
C/Net

The first Cyrix-brand microprocessors have started to roll out of plants owned by parent company National Semiconductor, signaling a shift in manufacturing operations that could lead to faster, better chip designs and more competition for Advanced Micro Devices and Intel, Cyrix's chief rivals.

The significance of the announcement lies in the complex relationship between chip design and fabrication facilities, explained Robert Maher, vice president of engineering at Cyrix. The Richardson, Texas-based chip vendor has been a "fabless" processor maker for most of its history, which means that it uses outside companies to manufacture its chips, such as IBM, which currently produces most of Cyrix's processors.

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Fastest Pentium notebooks here

By Brooke Crothers

January 12, 1998
C/Net

Intel (INTC) is announcing the fastest Pentium chip yet for notebook PCs today, and major manufacturers are chiming in with new systems.

The new Pentium MMX chip, code-named Tillamook, runs at 266 MHz and appears prominently in new notebook PCs from such companies as Dell Computer, Gateway 2000, Digital Equipment, Compaq Computer, and Toshiba, which have or will announce new systems based on the chip.

 

National Gearing Up Cyrix MPU Capacity

By J. Robert Lineback

January 12, 1998
Semiconductor Business News

National Semiconductor Corp., Santa Clara, Calif., is gearing up to increase the production of Cyrix 6x86MX processors. It is moving the processor to a new 0.25-micron process technology and planning to have in place enough manufacturing capacity worldwide to ship 10 million 6x86MX chips to PC makers this year.

National on Monday announced it has successfully produced functioning 6x86MX processors on a quarter-micron process in a pilot fab in Santa Clara. In the summer, National plans to start volume production of 6X86MX processors in its plant located in South Portland, Maine. The chip will be the first Cyrix Corp. product fabricated by National following its $530 million acquisition of the Richardson, Tex.-based MPU supplier.

 
Updated January 12, 1998

Intel, Cyrix Launch Notebook Chips

By Mark Hachman

January 12, 1998
Electronic Buyers News

Having ended 1998 scrambling for design wins in low-cost desktop PCs, Cyrix Corp. and Intel Corp. have kicked off 1998 by carrying their fight into notebook computers.

Today, Intel officially launched a 1.8-V version of its 166-MHz Pentium with MMX processor, together with a 2-V, 266-MHz version of the same chip. Meanwhile, last week Cyrix introduced an MMX-enhanced version of its 200-MHz MediaGX integrated processor for notebook PCs.

 

Supply Still A Problem As AMD Hones K6

By Mark Hachman

January 12, 1998
Electronic Buyers News

Advanced Micro Devices (AMD) Inc. is now shipping 0.25-micron versions of its K6 microprocessor. But unless you work for Compaq Computer Corp. or IBM Corp., you won't be able to buy any - at least for now.

In what has become a refrain, AMD last week trumpeted its flashy new process, then mumbled that a limited supply prevented the company from releasing products for general sale that use the technology.

 

Intel, AMD Feel Bottom-Line Pressure

By Kelly Spang

January 11, 1998
Computer Reseller News

As Intel and Advanced Micro Devices close their books for 1998, steep price drops, the growing strength of the sub-$1,000 PC, and the economic crisis in Asia will affect the chip makers' financial results.

For Sunnyvale, Calif.-based AMD, Wall Street analysts are expecting manufacturing problems to drag down the company's bottom line, as well.

 
Updated January 9, 1998

Intel grapples with legal troubles

By Dawn Yoshitake

January 8, 1998
C/Net

Faced with fights on several fronts, Intel (INTC) is starting the year with the spotlight shining on its legal and antitrust woes.

Earlier this week, the chip giant pushed back the date by which it expects to hear from the Federal Trade Commission on whether the agency will challenge its acquisition of Chips and Technologies (CHPS), marking a fifth postponement of the deal.

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Questions surround report on FTC's Intel inquiry

By Robert Lemos

January 9, 1998
ZDNN

Reports that the Federal Trade Commission is deepening its antitrust investigation of Intel Corp.'s business practices would seem to bode ill for the chip giant.

Not so, say analysts.

"Digital [Equipment Corp.] has a lot more to lose if these proceedings drag on -- especially if the deal is declined in the end," said Mike Feibus, an industry analyst at Mercury Research Inc.

 

Intel: Nothing To Fear From The FTC

By Gabrielle Jonas and Mary Mosquera

January 9, 1998
TechInvestor

Intel said Thursday it is confident that the Federal Trade Commission's investigation into the chip maker's proposed purchase of Digital Equipment's semiconductor operations will not encounter any roadblocks.

In October, Digital agreed to sell its semiconductor operations to Intel for $700 million to settle a patent-infringement lawsuit. As part of the settlement, Intel would manufacture Alpha processors for Digital, and the two companies also signed a 10-year cross-licensing pact.

 

Processor Whispers
About beer, bugs and bunnies

By Andreas Stiller

C'T

Oh horror, another bug - this time it hits the Cyrix processor 6x86MX. Unfortunately our suspicion mentioned in last issues Whispers prove to be correct: a bad bug sneaked into the P6 instructions.

But first something pleasant: presently the transistor is celebrating its 50. birthday. While it’s inventors Bardeen, Brattain and Shockley were able to work at the gold-plated Germanium crystals with a razor blade (0,25 mm technology), one nowadays manipulates grooves that are 1000 times finer. Instead of gold, aluminum is used today, and recently copper started to come into fashion. After IBM and Motorola now Texas Instruments also announced that they are able to manage the complicated copper process. Copper is a much better conductor for electricity and heat than aluminum and therefore allows smaller structures.

 

Intel to roll out fastest Pentium

By Brooke Crothers

January 8, 1998
C/Net

Intel (INTC) will announce the fastest Pentium chip yet for notebook PCs on Monday, just as the chip giant is challenged for the first time in this segment by Intel-compatible manufacturers.

The new Pentium "Tillamook" MMX chip will run at 266 MHz and appear prominently in new notebook PCs from vendors such as Dell Computer, Digital Equipment, Compaq, and Toshiba, which will next week announce new systems based on the chip, according to industry sources.

 
Updated January 8, 1998

FTC finds fault in Intel-DEC settlement

By Jube Shiver Jr.

January 8, 1998
Los Angeles Times

Sharpening its antitrust investigation of Intel Corp., the Federal Trade Commission staff has found serious antitrust problems with the computer chip maker's $700 million settlement of a patent infringement suit brought by rival Digital Equipment Corp., according to people close to the probe.

The FTC staff, which believes the settlement last October would limit competition to Intel's market-leading Pentium chip, is now building a case against the commission approving the deal. In addition, the FTC staff is mulling whether to restrict Intel's efforts to extend its dominance of microprocessors to other computer components, the sources said.

 

No Intel Inside New PCs From Compaq And IBM

By Mo Krochmal

January 6, 1998
Techweb

Compaq and IBM rolled out low-cost PCs on Tuesday that won't be wearing the "Intel Inside" label.

Compaq introduced 15 models, with almost half running on K6 processors made by Advanced Micro Devices. Compaq also announced its Presario 1200 Series notebook, which costs $1,999 and is based on the 200-MHz integrated Cyrix processor.

IBM rolled out two Aptiva models that run on IBM K6 266-MHz and 233-MHz MMX-enhanced processors.

 
Updated January 7, 1998

AMD's in the chips

By Robert Lemos

January 7, 1998
ZDNN

In 1998, chip maker and Intel rival Advanced Micro Devices learned a valuable lesson: The devil's in the details.

After launching its Pentium rival -- the K6 processor -- in April, the company failed to meet demand for the chip because of production problems. Now those "small" details seem to have been solved.

Many related stories linked from this story.

Cyrix Adds MMX-Enhanced Chip For Portables

By Patrick Waurzyniak

January 6, 1998
Electronic Buyers News

Cyrix Corp., Richardson, Texas, on Tuesday unveiled a MMX-enhanced version of its MediaGX microprocessor aimed at the notebook computer market.

Cyrix, a subsidiary of National Semiconductor Corp., said that Compaq Computer Corp. has designed the new processor into its Presario line of notebook computers, enabling Compaq to provide the first MMX-enhanced 200-Mhz notebook for less than $2,000.

 

AMD evicts Intel, Cyrix at Compaq

By Brooke Crothers

January 6, 1998
C/Net

Today may go down in Advanced Micro Devices' (AMD) history as one of its most glorious days, as the chipmaker readies itself for what may be a banner year.

Today AMD effectively became the main supplier of chips for one of the hottest PC markets to the largest PC maker in the world. In other words, all the new consumer desktop systems below $1,200--one of the highest volume consumer PC markets--announced today by Compaq are using AMD processors, not Intel nor even low-cost leader Cyrix appear in this price range. (See related story)

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Compaq tapping AMD, Cyrix

By Brooke Crothers and Kurt Oeler

January 6, 1998
C/Net

Compaq Computer (CPQ) announced a slew of new consumer computers, including its first home dekstop systems with an Advanced Micro Devices processor and the first notebooks with Cyrix and AMD chips from a major vendor in the United States.

AMD's K6 chip appears in two Presario consumer models and one model for the educational market, while Cyrix's MediaGX MMX-enhanced processor turns up in two consumer notebooks.

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Pentium II PCs coming cheap

By Kurt Oeler

January 6, 1998
C/Net

Packard Bell NEC introduced five low-priced, high-speed models targeting the so-called SOHO (small office/home) market, including a 266-MHz Pentium II system for $1,899.

The Sacramento, California-based manufacturer reemphasized its traditional focus on the value-oriented consumer, particularly with the introduction of its Platinum 4500. The high-speed Intel-based machine comes with 64MB of memory, a 6.4GB hard drive, a CD-ROM drive, a 56-kbps modem, and software for home users, such as the Quicken personal finance program and Microsoft's Word.

 

IBM turns to speedy AMD K6

By Erich Luening

January 6, 1998
C/Net

IBM (IBM) today rolled out two new consumer PCs with Advanced Micro Devices' K6 processor, lending momentum to newfound partiality toward the K6 among major PC manufacturers.

The Aptiva models are priced at $1,599 and $1,099. The $1,599 E46 is the first PC to be equipped with a 266-MHz K6 processor, while the less expensive E26 uses the K6 233-MHz processor.

 

Intel extends offer for C&T

By Tom Schmidt

January 6, 1998
PC Week Online

Intel Corp. announced today it has extended the expiration date of its $17.50-per-share offer for all outstanding shares of Chips and Technologies Inc. from Jan. 19 until Jan. 21.

The Santa Clara, Calif., chip giant also said it expects to hear from the Federal Trade Commission by Jan. 13 on whether the agency intends to challenge the deal.

 

Compaq rolls out $799 PC with AMD inside

By Margaret Kane

January 6, 1998
ZDNN

Forget sub-$1,000. The new price to beat in the PC market is sub-$800.

One day after Hewlett-Packard Co. announced systems at that once-unthinkable price, Compaq Computer Corp. matched it, rolling out a widely expected line of Presario systems featuring Advanced Micro Devices Inc.'s K6 processors.

Many related stories linked from this story.

Intel to spend $5.4 billion on chip gear, analyst predicts

By J. Robert Lineback

January 5, 1998
Semiconductor Business News

Intel Corp. is expected to increase its spending on semiconductor capital equipment by 20% to $5.40 billion in 1998 compared to $4.50 billion in 1998, said analyst Bill McClean, president of IC Insights Inc., during a forecast presentation at an executive conference here today.

About 200 top executives attending the Industry Strategy Symposium gasped when McClean disclosed his projection of Intel's capital spending plans in 1998. At $4.5 billion, Intel's spending on capital equipment was about 20% of its 1998 sales, McClean said, adding that the company's budget was about what it should be for a company its size.

 
Updated January 6, 1998
Cyrix to debut 200MHz MediaGX for low-cost notebooks

By Lisa DiCarlo

January 6, 1998
PC Week Online

Having pioneered low-cost, integrated X86 microprocessors for sub-$1,000 desktops, Cyrix Corp. is now turning its sights to fully featured, inexpensive notebook PCs.

The Richardson, Texas, subsidiary of National Semiconductor Inc. will introduce today a 200MHz MMX-enhanced MediaGX for portables. And like the original MediaGX introduced last year, Cyrix has already signed up a heavy-hitter, Compaq Computer Corp., which will use the chip in a Presario notebook for home and small office consumers.

 

Intel sees chip surplus, price cuts

By Brooke Crothers

January 5, 1998
C/Net

Intel (INTC) is facing cancellation of notebook PC processor orders, boding ill for processor sales in this segment.

Intel has an inventory of about 3 million in unsold processors, due to "massive cancellations of notebook chips," according to Ashok Kumar, an analyst at Loewenbaum & Company. He cites the sluggish Asian market, particularly Japan, as one of the reasons for the notebook chip stockpile.

 
Intel prepares additional price cuts, 333MHz Pentium II

By Lisa DiCarlo

January 5, 1998
PC Week Online

Giving an already healthy PC market a healthy shove, Intel Corp. will kick-start 1998 with processor price cuts and a bump up in clock speed.

Late this month, the Santa Clara, Calif., company will cut prices of Pentium II and Pentium Processors with MMX Technology by as much as about 25 percent, according to sources familiar with Intel's plans. The company is also expected to release a 333MHz Pentium II on Jan. 26, the sources said.

 
Updated January 5, 1998

Has Intel already documented performance flaw?

By Intelligent Firmware

...But what Intel does not reveal in this page or anywhere else, is that if one makes afterwards (while the burst has not finished) a request of another word in the same burst line the execution unit waits for the entire burst to finish (documented) and then there is a considerable time penalty (the undocumented flaw). But if while the burst has not finished another read request is made in a different burst line,
there is no penalty; immediately after the current burst, a new one is generated. Consequently, in order to get rid of this penalty the workaround is to rearrange the order of read requests, that is to make them in a special order, non-sequentially.
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British firm claims Pentium "bug"

By Jim Davis

December 31, 1998
C/Net

A British software company says it has found a flaw that negatively impacts the performance of Pentium processors, but the alleged glitch appears to have been identified and documented years ago by Intel engineers.

An article by the U.K.-based Intelligent Firmware has also been posted at Intel Secrets, a site which tracks inside information on the world's leading chipmaker.

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Sub-$1,000 PCs:
The future on a budget

By Michael Kanellos

December 31, 1998
C/Net

Two years ago, the Internet came into the public spotlight offering a glimpse of a bright, new electronic future. This year, the sub-$1,000 PC occupied center stage because it showed how cheap, easy, and accessible that world could be.  

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