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This Week's x86 Headlines (May 25, 1998)
All other stories and details below
C/Net Intel cuts 650 jobs from PC plant
C/Net Intel case in FTC chief's hands
PC Week Online AMD revs up Intel rivalry with K6-2
Semiconductor Business News OPTi says potential buyer ends talk in sale of group
C/Net Intel's business practices face government scrutiny
San Jose Mercury News New AMD chip breaks from Intel
EE Times Latest x86 bid gives Rise to integration issue
The Register Intel leaves Katmai MMX2 stuff hanging around
Shows details to US games developers

 

x86 Weekly News

Collected By Robert R. Collins

Week of May 25, 1998

Older News

May 29, 1998

Intel cuts 650 jobs from PC plant

By Kurt Oeler

May 28, 1998
C/Net

Intel will lay off up to 650 manufacturing employees at a Dupont, Washington, facility, the first group of some 3,000 positions the company expects to trim from its rolls over the next five months.

In August, Intel will begin phasing out its PC and server computer manufacturing operations in Dupont, where the company completes the assembly of chips, hard drives, and other components. Intel does not sell these products under its own name, but markets them to third-party vendors who brand them independently.

See Today's Related Stories

Intel case in FTC chief's hands

By Michael Kanellos

May 28, 1998
C/Net

A Federal Trade Commission decision on whether to file an antitrust case against Intel has moved to the second-to-last phase in the process, making it possible for a case to be filed in the next few weeks.

The FTC investigative staff has sent its recommendations to William J. Baer, the director of the Bureau of Competition for the FTC, sources close to the investigation said.

See Today's Related Stories

Intergraph CEO: FTC Probes Intel On Its Own

By Edward F. Moltzen

May 29, 1998
Computer Reseller News

Intergraph's CEO said his company, which is suing Intel for anticompetitive behavior, has not actively helped the U.S. Federal Trade Commission in its probe of the chip maker's business practices.

Jim Meadlock said he only had one brief conversation with FTC officials about his Intergraph's claims against Intel, but is assuming the agency has culled publicly available records about the Intergraph-Intel lawsuit in federal court.

 

Investors dismiss FTC vs.Intel

By Reuters

May 29, 1998
C/Net

Investors yesterday appeared to shrug off, for now, a looming lawsuit by the Federal Trade Commission against Intel, whose chips are inside more than 80 percent of the world's personal computers.

Government lawyers are preparing charges that the world's largest semiconductor company illegally abused its monopoly power to hurt its rivals, sources familiar with the case told Reuters late Tuesday.

 

Intel files counterfeit chip suit

By Erich Luening

May 28, 1998
C/Net

Chip behemoth Intel today filed suit and won a restraining order against an alleged racket that tampers with its microprocessors and stamps them with false speed ratings before selling them at higher prices.

Intel lawyers reportedly told Australian Federal Court Justice Brian Tamberlin that a "remarking" scheme involving Pentium and Pentium II chips originated in Asia and had spread to Australia. Since reports of fake chips first surfaced, fears of counterfeit proliferation have spread.

 

AMD revs up Intel rivalry with K6-2

By Lisa DiCarlo

May 28, 1998
PC Week Online

Advanced Micro Devices Inc.'s K6-2 chip, announced today, is not only a watershed product for the company, but it also marks the beginning of a campaign to compete on more levels with Intel Corp.

The K6-2, with 21 integrated 3D instructions called 3DNow, is the first nonclone processor developed by an Intel X86 competitor. Cyrix Corp. and Centaur Technology Inc. will use the 3DNow! extensions in forthcoming processors.

 

OPTi says potential buyer ends talk in sale of group

By Will Wade

May 28, 1998
Semiconductor Business News

OPTi Inc. here announced late yesterday that a possible deal to sell its systems logic group had fallen through. The company has been in discussions for the past three months with an unnamed potential buyer, and even received an offer for the business unit, but that offer was withdrawn.

Bernard Marren, president and CEO of OPTi, said he did not know why the offer was withdrawn. However, he did note that rumors of the deal had reached some of OPTi's shareholders.

 
Today's Related Stories

Intel to cut up to 650 jobs at DuPont site

May 28, 1998
San Jose Mercury News

Intel Corp. plans to close its computer manufacturing division at its 2-year-old plant here, which will cost as many as 650 employees their jobs.

The computer chip maker will continue its research and development operation at the plant south of Tacoma, which employs about 1,800 people, Intel spokesman Bill Calder said.

He said Intel plans to contract with an outside vendor to perform the computer assembly work. The assembly line will be phased out by the end of the year.

 

Intel's business practices face government scrutiny

By George Leopold and Alexander Wolfe
with additional reporting by Ron Wilson

May 28, 1998
C/Net

The antitrust lawsuit that the Federal Trade Commission is expected to file against Intel Corp. sets the stage for another government-industry showdown over competition in the U.S. computer industry, and raises questions over whether Intel and partner Microsoft Corp. should be compelled to change the way they deal with PC makers.

Industry and legal observers agree that Intel's bitter legal battle with Intergraph Corp. (Huntsville, Ala.) was a turning point in the FTC's decision to pursue an antitrust case against Intel. In that case, Judge Edwin Nelson of U.S. District Court ruled on April 10 that Intel had engaged in "anti-competitive practices" by attempting to extend its monopoly in microprocessors to other markets. Intel is appealing that decision.

 

FTC poised to launch antitrust lawsuit against Intel

By Tom Schmidt and Margaret Kane

May 28, 1998
PC Week Online

It's looking more and more as if Intel Corp.'s turn is next.

In the shadow of the recent antitrust assault on Microsoft Corp., the Federal Trade Commission appears on the verge of taking the next step in bringing its own antitrust action against Intel, the other half of the so-called Wintel duopoly.

As early as Friday, FTC staffers are expected to recommend a two-pronged suit against the world's leading microprocessor maker, according to sources close to the investigation and published reports.

 

Federal Trade Commission Readies Intel Suit

By Mary Mosquera

May 28, 1998
TechWeb

The U.S. Federal Trade Commission is expected to slap Intel with an antitrust lawsuit for allegedly using its monopoly power illegally against PC makers that use its microprocessors.

An FTC spokeswoman said Thursday she could not comment on agency investigations.

Howard Morse, former assistant director of the FTC's Bureau of Competition and now an attorney at Drinker, Biddle & Reath in Washington, D.C., said any antitrust suit the government would bring against Intel, if it did act, would draw upon legal proceedings related to Intergraph, a workstation maker based in Huntsville, Ala.

 

Federal Trade Commission Readies Intel Suit

By Christine Casatelli

May 28, 1998
TechWeb

The U.S. government is gearing up to launch another high-tech antitrust suit -- this time against Intel, according to The New York Times Thursday.

The Federal Trade Commission is reportedly getting ready to charge the chip maker (company profile) with using its dominant position to withhold important technical information about its microprocessors from some computer manufacturers.

 
May 28, 1998

FTC to proceed with Intel suit

Mercury News Staff and Wire Reports

May 28, 1998
San Jose Mercury News

The Federal Trade Commission is moving ahead with plans for a tightly focused antitrust suit against Intel Corp., despite indications from the company that it would change some of the business practices at issue.

The suit would accuse Santa Clara-based Intel of withholding key technical information about its microprocessors from at least two computer manufacturers with which Intel was involved in patent disputes. Because of Intel's overwhelming dominance in the microprocessor market, manufacturers are essentially unable to design new computers without that information.

See Today's Related Stories

New AMD chip breaks from Intel

By Tom Quinlan

May 27, 1998
San Jose Mercury News

Advanced Micro Devices will attempt to escape Intel Corp.'s long shadow today when it introduces a new processor ''unlike anything Intel has.''

According to analysts and sources familiar with AMD's new processors, the K6-2 chips and AMD's 3D-Now technology should provide enough power at a low enough price that AMD can start moving into the more expensive and lucrative market for multimedia PCs.

The chips are impressive enough that at least two major PC manufacturers -- International Business Machines Corp. and Fujitsu Ltd. -- will announce plans to use the chips in PCs on Thursday, support AMD was unable to get when it first announced the K6 line last April.

 

New AMD pricing undercuts Intel

By Michael Kanellos

May 27, 1998
C/Net

A window of opportunity may open up this week for Advanced Micro Devices (AMD) when it unveils the new K6-2 processor, although analysts caution that aggressive pricing by Intel could quickly shut it again.

Increasingly found in sub-$1,000 PCs from top-tier vendors such as Compaq and IBM, AMD's processor line could take another step forward with the K6-2. Incorporating the new 3D-Now instruction set, the chip is expected to be a staple for the next round of high-performance, low-cost PCs.

 

MMX, Celeron PCs turn wisdom on its head

By James Niccolai

May 27, 1998
InfoWorld Electric

IBM and Acer America this week released business PCs that dip well below the $1,000 price mark. But a $300 price gap between the offerings seems to contradict conventional wisdom -- that newer processors and more expensive PCs equal faster performance.

IBM's PC 300 GL is expected to retail at $969 and sports Intel's recently introduced 266-MHz Celeron processor. Acer's AcerEntra 3000 series starts at $699 and runs on the older, 233-MHz Pentium MMX processor.

Although Acer's Pentium MMX machine costs less, it will likely run business applications faster than IBM's Celeron-based PC, said Michael Slater, industry analyst and founder of Microprocessor Report, in Sebastopol, Calif.

 
Today's Related Stories

Report: Intel FTC Staff Review Will Be Within Next Week

By Kristin Balleisen

May 27, 1998
Washington Post

Welcome to Beltway Bootup.

WHEN IT RAINS: It just hasn't been a good year for Wintel. First, Microsoft Corp. is sued under the Sherman Act. Now it looks as if Intel Corp. is closer to facing more monopoly-abuse charges. Sources tell Reuters that the Federal Trade Commission's top staff will review evidence against Intel within the next week. If the case moves forward, expect narrow charges to be brought in front of an administrative law judge – with broader charges possible later. Meanwhile, Intel's got to deal with competition. As the sub-$1,000 PC market continues to exhibit legs, another Intel nightmare could come true as PC makers turn to other chipmakers for the low-end machines. "You can make money at $999 with an Intel processor, but at $799 and below, you need one of the other guys," says analyst Mike Feibus.

 
May 27, 1998

Intel antitrust case heats up

By Reuters

May 26, 1998
C/Net

Government lawyers are preparing charges that Intel illegally abused monopoly power to hurt rivals, sources familiar with the case said today.

Within the next week, top staff at the Federal Trade Commission will review the proposed charges against the company, which makes the microprocessors running four out of every five PCs, the sources said.

 

AMD claims K6-2 releases it from 25% rule
Prices of parts and spec leak early

May 27, 1998

The Register

AMD will release its K6-2 processor tomorrow but details of its specification and pricing have already leaked out.

The first iteration of the processor, will be a part that runs at 333MHz priced at $369 in units of 1,000 and that will have a knock on effect on other members of AMD's CPU family. According to the leaks, the 300MHz part will cost $281/1000 and the 266MHz chip $185/1000.

 

AMD expanding horizons in low end

By Michael Kanellos

May 26, 1998
C/Net

A window of opportunity may open up this week for Advanced Micro Devices (AMD) when it unveils the new K6-2 processor, although analysts caution that aggressive pricing by Intel could quickly shut it again.

Increasingly found in sub-$1,000 PCs from top-tier vendors such as Compaq and IBM, AMD's processor line could take another step forward with the K6-2. Incorporating the new 3D-Now instruction set, the chip is expected to be a staple for the next round of high-performance, low-cost PCs.

 
May 26, 1998

Latest x86 bid gives Rise to integration issue

By Anthony Cataldo
with additional reporting by Mark Carroll and Rick Boyd-Merritt

May 26, 1998
EE Times

Startup Rise Technology is about to throw its hat into the ring of Intel X86 processor competitors with a Socket 7 device geared toward low-end PCs and notebook computers. The new entrant comes at a time when processor, graphics and core-logic companies are partnering to deliver integrated parts to power low-end systems whose price points are continuing to fall.

The move toward sub-$700 PCs is forcing the industry to look for as many ways as possible to cut costs. "By the end of this year, you will see at least one of the major U.S. OEMs offering a sub-$600 PC," said Samuel Liu, president of Taiwanese chip-set maker Silicon Integrated Systems Corp. "Moving graphics functions onto the core logic is one way to reach that price point."

 

Intel and IBM square up over very odd and strange battle
Like Tweedledee and Tweedledum the fight is over a plum pie

May 19 1998

The Register

IBM today made an unprecedented attack against its partner Intel, blaming it for confusing its corporate customers.

The director of IBM's personal systems group in the UK and Ireland said that confusion in the market over PC specifications was responsible for lower demand from major corporations, although he stressed it was his personal view.

Ian Boulton, the newly appointed head of the PC business, said: "People are saying they don't know what to do in the corporate market place." He said while IBM was gaining customers, the value of their orders was down.

 

Intel licenses architecture. Big deal.
Company always said it would license it anyway

May 20 1998

The Register

Intel said it had no comment to make about a story on the US wires that it had licensed its P6 technology to an unnamed third party.

But a representative said that he was under the impression that companies that wanted to license the architecture could so anyway.

The report quoted Paul Otellini, general manager of Intel's architecture unit as saying the company had already licensed the technology and the company will introduce chip sets soon.

 

Intel leaves Katmai MMX2 stuff hanging around
Shows details to US games developers

May 17 1998

The Register

A US software expert claims he has discovered the truth behind Intel's additional MMX2 instructions in its forthcoming Katmai processor. In addition, he has posted information he said he found on an FTP site, which could compromise Intel's internal security.

Clive Turvey, who has posted the information at his web site at http://www.tbcnet.com/~clive/vcomwinp.html#KNI said he came across the instructions accidentally on Intel's own public FTP site.

 

IBM Micro-Cyrix agreement takes further twist
IBM claims lower prices and better distribution for same parts

May 18 1998

The Register

A row is set to erupt between NatSemi-Cyrix and IBM after Big Blue said it would offer the same processors to the market but at a lower price. That could precipitate the end of the agreement between both companies, as National Semiconductor prepares to fabricate all parts itself. One source said it was on the verge of announcing its own Slot One solution to attack Intel on its own ground.

A few days ago, it emerged that IBM Microelectronics had difficulty in setting up its distribution programme in Europe. IBM Microelectronics is set to inflame the situation further by asserting that its products have better packaging, testing and distribution than the same chips from Cyrix. The company today announced the release of two chips in its 6x86MX range. These processors are produced as part of a joint agreement with National Semiconductor-Cyrix.

 

Cheaper, faster notebooks on way

By Michael Kanellos

May 22, 1998
C/Net

Next year will likely be a watershed for the pricing and performance of notebook computers.

Low-cost yet high-performance versions of Intel’s Celeron processor will begin to permeate the portable world in the first half of next year, say sources, joining a low-end notebook market being pioneered by Cyrix and Advanced Micro Devices.

 

Intel Clones Set New Course

By Mark Hachman

May 25, 1998
Electronic Buyer's News

Once thought of as clone makers, manufacturers of x86 microprocessors are beginning to carve out unique road maps.

The relationship between IBM Microelectronics and National Semiconductor's Cyrix subsidiary is quietly evolving beyond simply sharing processor wafers.

And Integrated Device Technology's Centaur Technology subsidiary described its plans to integrate core-logic functions into its microprocessors at last week's PC Tech Forum.

 

Rude Awakening
Most of forged Pentium II models discovered in the United States

By Sabine Cianciolo

c't Magazine

In the United States nobody so far took notice of reports from far-off Europe regarding forged Intel processors. But by means of the c't test program 'ctP2info' more and more users and dealers in Intel's native country now discover that they also fell a victim to the remarking fraud.

Until quite recently forged Pentium processors in the United States have simply been a typical case of 'SEP' (Somebody Else's Problem). This is aggravated by the fact that for many Americans the importance of news diminishes corresponding to the distance squared. This perhaps is the only possible explanation for the lack of interest so far in the American trade press concerning this subject.

 

Big Blue gets in more trouble with NatSemi
Reports say the company is relying on Cyrix technology

May 25 1998

The Register

Senior executives at IBM Microelectronics have said that the foil they showed in the UK last Monday and exclusively revealed here, will be based on the design of the Cyrix Slot One solution.

But that disclosure is set to mean further friction between the two companies, as National Semiconductor-Cyrix looks set to ditch IBM as its own fabs come onstream.

 

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