x86 Headline NewsFor the week of June 01, 1998 |
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x86 Weekly News Collected By Robert R. Collins |
Week of June 01, 1998 |
Older News |
June 5, 1998 | ||
FTC ready to vote on IntelBy Michael Kanellos June 4, 1998 |
The Federal Trade Commission announced
that top agency officials will meet next week to vote on
an "enforcement action" against an unspecified
company that many believe is Intel. As reported earlier, William J. Baer, the director of the FTC's bureau of competition, delivered his assessment of the nine-month investigation into the chipmaker's business practices to the agency's board of commissioners earlier this week. Sources close to the investigation said that Baer, along with his investigative staff, recommended that the commissioners file an action against Intel. |
See Today's Related Stories |
Compaq
and Acer figure in FTC Intel investigation
|
Evidence gathered by the Federal Trading
Commission for its forthcoming action against Intel
includes data on two key legal actions involving Compaq
and Acer, according to the San Jose Mercury. Sources
close to the RTC enquiry say that Intel effectively
shielded other customers from legal action by the two
companies, forcing them to back down and sacrifice their
bids to establish patents. It would seem possible therefore that Intel favours the widest possible dissemination of intellectual property rights, except in the case of one company. In the case of Compaq, the PC company had taken action against Packard-Bell in 1994, claiming Packard-Bell infringed patents covering system design. At the time Packard-Bell was one of Intel's key allies in the campaign to move customers to Pentium at top speed, while relations with Compaq were poor, one of the reasons being because Intel was manufacturing Pentium boards for a number of upstart companies, including Packard-Bell. |
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Intel rebounds, but Wall Street remains skepticalBy Larry Dignan June 4, 1998 |
Shares of Intel Corp. (INTC) rebounded
Thursday gaining 2 1/4 to 68 3/16, or more than 3
percent, as bargain hunters were relieved after the
company said it wouldn't change its second quarter
guidance. Intel shares fell 5 percent on Wednesday to near 52-week lows after Hambrecht & Quist cut its earnings estimates, citing weak PC demand. Rumors that Intel would issue a profit warning also hurt shares. The company said it didn't plan to make an announcement, but could still issue a profit warning. |
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Intel's Roller-Coaster Ride: All In The Game?By Gabrielle Jonas June 5, 1998 |
The bad news came fast and furious for
Intel this week, sending the stock to its lowest point in
a year. There is plenty to be worried about -- from the
delay of the Merced chip to possible antitrust
allegations to a slowdown in chip sales -- but there is
still no consensus on Wall Street. The shock treatment began Wednesday, when Hambrecht & Quist analyst Rob Chaplinsky trimmed his earnings estimates to 65 cents per share from 69 cents for the second quarter, which ends June 30, and lowered his fiscal 1998 earnings outlook to $2.92 per share from $3.04. The downgrade even sent shivers through the Asian markets. |
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Intel alters its 32-bit processor road mapBy Anthony Cataldo June 4, 1998 |
Improved production yields with its
0.25-micron process technology will allow Intel Corp. to
introduce its Katmai Pentium II processor ahead of
schedule, and to add a 300-MHz version of its Celeron
processor with integrated L2 cache to its 1998 processor
road map, the company said. The 400-MHz and 500-MHz Pentium II Katmai processors, which include 70 new SIMD floating-point instructions, will now be introduced by the first quarter of 1999, rather than by the second quarter as previously planned. The processors are expected to be used in combination with Intel's 440BX chip sets, which support 133-MHz AGP and a 100-MHz system bus. |
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Updated Stories | ||
Xeon, Intel price cuts dueBy C/Net Staff June 4, 1998 |
Intel will release its first Xeon
Pentium II processors for servers and workstations later
this month, while it cuts prices on its desktop
processors next week. The chip giant also is expected to cut prices Monday on its Celeron processors targeted for use in basic and performance PCs, as it moves to reduce prices more frequently in a sluggish PC market, analysts said. |
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Intel speeds 500-MHz rolloutBy Michael Kanellos June 4, 1998 |
Intel is accelerating the release of
Katmai--its highly anticipated, next-generation
multimedia processor--and will make more high-speed
Pentium II and Celeron chips than originally planned
after better-than-expected success with its current
manufacturing technology. The changes should bring larger quantities of faster Pentium IIs into the market than previously expected, which in turn may mean cheaper Intel-based desktops over the ensuing months and a tougher competitive environment for Advanced Micro Devices. |
|
Today's Related Stories | ||
FTC expected to vote on Intel suit MondayBy PC Week Online Staff June 5, 1998 |
The Federal Trade Commission has set a
meeting for Monday, June 8, to vote on antitrust action
against Intel Corp. (INTC), according to published
reports today. The FTC's so-called "sunshine phone" recorded message announced the noon ET meeting had been set to consider "enforcement action." At issue is whether Intel has leveraged its approximately 85 percent market share to subdue competitors and third parties, while locking OEMs into using Intel processors. |
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June 4, 1998 | ||
Intel
Investigation: FTC focuses on pattern
|
As Compaq Computer Corp. saw it, Packard
Bell had violated its patents and had to be stopped
through the courts. Then Packard Bell gained an
irresistible ally: Intel Corp. Intel's emergence as a voluntary defendant in the 1994 case rewrote the rules of engagement for the two giant personal computer makers. Industry insiders have told federal regulators that Compaq settled the dispute with Packard Bell, rather than risk further damaging its crucial relationship with the world's leading maker of microprocessors. |
Many related stories linked from this article |
Intel Takes The Hot SeatBy Fred Langa June 3, 1998 |
There are amazing parallels between
Microsoft's position in software and Intel's in hardware.
And what's good for the goose
One of the reasons Microsoft got itself in hot water was its Borg-like tendency to assimilate competitors. Over the years, Microsoft has absorbed more and more features and functions into its operating system, crowding out vendors of what once had been separate software products. |
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Intel redraws its road map for 32-bit processorsBy Lisa DiCarlo June 4, 1998 |
Less than a week after announcing a
six-month delay in Merced, its first 64-bit chip, Intel
Corp. is redrawing its entire 32-bit road map -- and the
new directions are faster and earlier. Intel officials said Wednesday that the delivery dates and clock speeds for the chips, including Tanner, Katmai, Celeron and Pentium II Xeon, have all been accelerated. |
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Intel accelerates new chip's debutBy Michael Kanellos June 4, 1998 |
Intel is accelerating the release of
Katmai, its highly anticipated, next-generation
multimedia processor, and will manufacture more
high-speed Pentium II and Celeron chips than originally
planned as a result of better-than-expected success with
its current manufacturing technology. The changes should bring larger quantities of faster Pentium II chips into the market than previously expected, which in turn will likely mean cheaper Intel-based desktops over the ensuing months and a tougher competitive environment for Advanced Micro Devices. |
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THE DAY AHEAD: Chip makers face an ugly 2QBy Larry Dignan June 3, 1998 |
Intel Corp.'s (INTC) falling shares are
only a precursor to an ugly second quarter for the
semiconductor industry. Shares of Intel fell 5 percent on Wednesday to almost hit a 52-week low after Hambrecht & Quist cut second quarter earnings estimates to 65 cents a share from 69 cents a share. Wall Street is expecting earnings of 70 cents a share for the quarter. Weak PC demand was the reason behind Hambrecht & Quist's change of estimates. Rumors that Intel would issue a profit warning also fueled the fall. |
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No Q2 warning from IntelBy Reuters June 3, 1998 |
Intel said that it does not plan to
issue any statement today on its second-quarter
financials, and that its previous guidance for its
second-quarter earnings to Wall Street has not changed. "At this point, I can say that we do not have anything planned for today," Intel spokesman Howard High said when asked about the rumors on Wall Street that Intel might pre-announce a second-quarter earnings shortfall. |
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Nasdaq drops on Intel concernsBy Reuters June 3, 1998 |
Worries about lower earnings from
chipmaker Intel drove the Nasdaq lower today in a
late-session turnaround that muted gains made earlier in
the day among telecommunications stocks. The Nasdaq unofficially finished down 19.48 points, or 1.11 percent, at 1,742.31, despite rising earlier in the day on a $7.1 billion merger between Tellabs and Ciena. |
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Intel Looks To Dominate Arcade GamesBy Malcolm Maclachlan June 3, 1998 |
Intel, whose chips dominate the PC
business, is now looking to take on the arcade game
market. The chip maker's vision is to turn arcade games into larger versions of PCs, with Intel microprocessors and a standardized architecture. The idea is to lower prices for arcade owners, who now pay anywhere from $15,000 to $40,000 for a game. Yet Intel is not the only company with such plans. However, its competitors may be able to deliver similar machines with more power and at a lower cost, analysts said. |
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June 3, 1998 | ||
Top FTC litigator: Sue IntelBy Michael Kanellos and Dan Goodin June 2, 1998 |
The top prosecutor for the Federal Trade
Commission in its investigation of Intel has recommended
pursuing an action against the chipmaker for alleged
antitrust violations. The high-level decision makes it very likely that the commission will seek legal recourse. Sources close to the investigation said that William J. Baer, the FTC's director of the bureau of competition, has recommended to the five-person commission that charges be filed against Intel for arbitrarily terminating nondisclosure agreements (NDAs), among other acts, which prevented computer companies from shipping products on time. These actions allegedly were undertaken to influence vendors into courses of conduct beneficial to Intel. |
See Today's Related Stories |
How strong is the FTC's Intel case?By Dan Goodin June 2, 1998 |
If the Federal Trade Commission takes
legal action against Intel for cutting off technical
information to its partners, the agency will be moving
into uncharted and legally risky territory, legal experts
say. Although the government has amassed plenty of ammunition in its nine-month investigation of the chip giant, its specific dealings with partners Intergraph and Digital Equipment--believed to form the core of the government's case--do not readily support violations of antitrust law, the experts argued. |
See Today's Related Stories |
States Keep Distance From Intel ProbeBy Edward F. Moltzen June 2, 1998 |
While the Federal Trade Commission (FTC)
moves forward with its own investigation into Intel's
business practices, several state attorneys general are
tracking the case, but have no immediate plans to jump
in, sources said. Unlike the recent antitrust case brought against Microsoft by 20 attorneys general and the District of Columbia -- which parallels legal action brought by the U.S. Department of Justice's Antitrust Division -- to date no attorneys general have opened their own probe into Intel's business practices, according to sources in four different attorneys general offices. |
See Today's Related Stories |
Merced delay will ripple through vendor plansBy Andy Santoni June 2, 1998 |
Intel's announcement that its foray into
64-bit computing will be delayed into the year 2000 will
have a ripple effect through the PC industry, but vendors
should be able to ride out the wave, industry observers
agreed. "Merced is a very complex design, and delays in microprocessor production are the rule, so it's not surprising in this context that Merced was delayed," said Dean McCarron, an analyst at Mercury Research, in Scottsdale, Ariz. As for the cause of the delay, "Intel was pretty adamant that it was not a manufacturing problem," McCarron said. |
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Xeon, Intel price cuts due June 29By Michael Kanellos June 2, 1998 |
Intel will release its first Xeon
Pentium II processors for servers and workstations on
June 29 and team the debut with price cuts on its desktop
processors, as the world's largest chip maker begins to
deliver a new class of high-priced, high-margin chips for
critical market segments. The first Xeon chips to be released will run at 400 MHz, and some will contain extra high-speed memory to increase the performance of the chips. These chips will cost $1,050 and $2,650 in volume, respectively, according to Ashok Kumar, semiconductor analyst at Piper Jaffray. Other sources put the price slightly higher. |
|
Cyrix envisions sub-$200 systemBy Jim Davis June 2, 1998 |
Chipmaker Cyrix is teaming up with two
other companies to offer a network computer system design
for under $200, as the National Semiconductor subsidiary
continues trying to enter the corporate market While the price of some new PCs have now been pushed to under $700, Cyrix, M-Systems, and Bcom will offer PC vendors a network computer specification that costs substantially less. The blueprint will address both the home and business markets. |
|
Today's Related Stories | ||
FTC investigators recommend action against
Intel
|
The US Federal Trading Commission is
likely to decide to bring antitrust charges against Intel
next week, following a recommendation to this effect by
FTC investigators. This recommendation will be placed
before the five FTC commissioners, and although Intel is
said to be lobbying intensively, it seems unlikely that
they'll overrule their staff. The case to be brought initially will be relatively restricted, but broader and longer term FTC investigations continue, so Intel may well face more extensive action some months down the line. At the moment however the FTC is focussing tightly on the issue of Intel withholding technical information from three customers with whom it had legal disputes. This happened to Digital last year, and although that action was settled out of court, the FTC has continued to follow up on Digital's complaints. |
|
FTC's top litigator said to recommend Intel suitBy PC Week Online Staff June 2, 1998 |
The top litigator for the U.S. Federal
Trade Commission has recommended that the commission file
suit against Intel Corp. for alleged antitrust
violations, according to published reports. Tuesday's edition of The Washington Post, citing sources close to the case, reports that the recommendation by William Baer, director of the FTC's bureau of competition, "virtually ensures" that the agency will sue Intel in an antitrust case. |
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FTC Recommends Antitrust Suit Against IntelBy Reuters June 2, 1998 |
The Federal Trade Commission's top
litigator has recommended the commission sue Intel for
alleged antitrust violations, sources familiar with the
case said Tuesday. The recommendation by William Baer, the FTC's director of the Bureau of Competition, opens the way for an antitrust suit against the world's largest chip maker, sources told Reuters. |
|
June 2, 1998 | ||
Intel Chip Delay Sinks Technology StocksBy Gabrielle Jonas June 1, 1998 |
Investors spooked by the delay of
Intel's next-generation chip dumped technology stocks in
droves Monday, sending the Nasdaq Composite lower, while
the broader market gained slightly. The Nasdaq lost 32.04 to 1746.83, but the Dow Jones Industrial Average closed up 22.42 to 8922.37. Investors drove Intel [INTC] shares down 3 7/16 to 68 after the company said it is delaying production of the Merced chip by at least six months. Monday, BT Alex. Brown downgraded Intel to market perform from buy, and Cowen cut the shares to neutral from long-term buy. |
|
Muted
response to Intel Merced delay
|
Intel's stock fell in response to news
that the next generation Merced processor hadbeen delayed
by at least six months, but analysts have already largely
discounted Merced as a major factor in Intel's revenues
for the next few years. Items of more immediate concern
are the company's difficulties against low-end
competitors, and the likelihood of FTC action against it.
The delay puts production volumes back to the middle of 2000, and hasn't been entirely unexpected (it was predicted in The Register last year), and although it may appear to inconvenience some companies, it's at least as likely to give them breathing space to complete their development. |
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AMD Fights Back With New 3D K6 ChipBy Mark Hachman June 1, 1998 |
Stung by criticism that its
microprocessors fail to deliver sufficient multimedia
performance, Advanced Micro Devices Inc. has answered
with a 3D-enhanced version of its K6 microprocessor. The K6-2, once known as the K6 3D, is an enhanced 0.25-micron version of the companys flagship K6 microprocessor plus 3DNow!, AMDs proprietary instructions for accelerating lighting and geometry calculations in games. AMD executives announced the chip last week at Electronic Entertainment Expo in Atlanta, which has rapidly evolved into the Comdex of the video-game and 3D-chip industry. The announcement was backed by IBM Corp. and a host of second- and third-tier OEMs that will use the new chip. |
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Fast
Flipper
|
Big Blue is launching the next stage of
the proven 'M2' engine - new technologies and
optimizations pose quite a challenge for Intels
Pentium-II-300. Even though IBM remains a partnership with Cyrix - they meanwhile go their different ways, not only as far as the name is concerned, but also in some manufacturing details. While Cyrix mother National already introduced a PR300 version of the M-II a few weeks ago - still in classic 0,35-µm technology and with a clock of only 233 MHz (66 MHz x 3,5) - IBM is a few steps ahead.Their PR333 processor - still named 6x86MX - runs at 250 MHz and is manufactured in a new process technology that lies somewhere between 0,35 µm and 0,25 µm. The external bus is restricted to 83,3 MHz, faster versions would not make sense at this time, because boards and chip sets are not ready for 100 MHz yet, neither with VIAs MVP3 nor with Aladdin V from Acer Labs. But current boards are very capable of handling 83 MHz - enough reason for IBM to rely on that. Of course IBM is also offering a PR300 version (225 MHz = 3 x 75 MHz). |
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The Last
Bastion Topples
|
Counterfeit Intel processors and the
inaction of the market leader have almost become the
norm. Effective means of protection against this kind of
fraud remains out of reach. Intel advises its anxious
customers to buy the "Pentium II in a Box" with
its certificate of authenticity. Yet it has been proven
that even these can be counterfeit. The act of purchasing a Pentium II processor can increasingly be compared to playing the lottery. The imitations are becoming more exact and harder to identify, even for experts. Those looking to protect themselves from this misfortune opted for the somewhat more expensive "Pentium II in a box", a special unit which Intel created for retail trade. A shrink-wrapped processor with mounted cooling unit and fan, as well as a certificate of authenticity, are found inside a cardboard box with a hologram. A hologram with a serial number on the fan promises additional security. |
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Cyrix lands terminal dealBy Michael Kanellos June 1, 1998 |
Cyrix has landed a deal to provide
microprocessors to terminal vendor Wyse, an alliance which marks Cyrix's entry into corporate computing. The deal likely marks the first in a series of upcoming announcements between terminal vendors and makers of processors based around the Intel, or X86, architecture. Until now, terminal vendors have mostly relied on RISC-based processors. |
See Today's Related Stories |
Updated Stories | ||
Problems delay Merced chipBy Michael Kanellos June 1, 1998 |
Merced, the next-generation processor
from Intel, will be delayed about six months, a blow to
workstation and server makers such as Hewlett-Packard
that are betting heavily on the chip. The delay is a result of manufacturing problems rather than a problem with the 64-bit chip's design, Intel announced Friday. With the delay, the release of Merced will not occur until 2000. Originally, the chip was scheduled to appear in late 1999. |
|
Today's Related Stories | ||
Intel shares stumble over Merced delayBy Eric C. Fleming June 1, 1998 |
Merced was seen by the company and analysts to be a new engine of growth for the company that has foundered in recent quarters as PC makers clamor for cheaper chips for low-cost computers. Months after the sub-$1000 PC demand had bloomed, Intel countered competitors' cheaper chips, such as Advanced Micro Devices Inc.'s (AMD) K6, with its own low-cost chip, Celeron. Merced plans to take on the server market, dominated by Sun Microsystems Inc. (SUNW). Shares of Sun (SUNW) gained 1 13/16 to 41 7/8 after Morgan Stanley upped the company to a "strong buy" from "outperform." The Merced delay should help Sun defend its turf. | |
Cyrix and Wyse to co-develop MediaGX
terminal
|
NatSemi-owned Cyrix has made a major breakthrough in the thin client market, announcing this week a deal with Wyse for the production of a million units over the next three years. The two companies are to work together to design a low-cost Windows-Based Terminal using Cyrix's MediaGX, the processor aimed at low-cost markets by the company, and the basis of its NatSemi-backed system on a chip project. | |
June 1, 1998 | ||
Intel's Merced delayed to 2000By Craig Matsumoto and Brian Fuller June 1, 1998 |
Intel Corp. said today it has pushed
back the production schedule of its Merced processor to
mid-2000 from 1999. The company did not give any precise reasons for the slip but some industry sources suggested that verification-a bugaboo for earlier advanced logic designs from the likes of Intel and Advanced Micro Devices Inc.-could play a role. Intel, in an announcement after the close of the stock market Friday, made the news public and said it had notified customers of the delay. |
See Today's Related Stories |
Microsoft: Merced delay has little impactBy Mary Jo Foley May 29, 1998 |
Intel Corp.'s acknowledgment Friday that
its 64-bit Merced processor won't be commercially
available until mid-2000 doesn't give Microsoft Corp. --
one of the main providers of an operating system tailored
for the chip -- much additional breathing room. Microsoft's plan is to stay the course. Under the direction of NT chief architect David Cutler, Microsoft will continue to develop its 64-bit NT release in parallel with its 32-bit NT 5.0 implementation. |
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As Intel's Merced plans cool, FTC's attack comes to the boilBy Lisa DiCarlo May 29, 1998 |
Intel Corp.'s acknowledgment today that
its first 64-bit processor, code-named Merced, will be
delayed by approximately six months comes at a
particularly inopportune time for the chip giant, which
is bracing for a possible antitrust lawsuit from the
Federal Trade Commission. FTC attorneys have been investigating Intel's business practices since September 1997 and are reportedly compiling a case to present to FTC commissioners, who will shortly vote on whether to file suit against the Santa Clara, Calif., company. |
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Intel downplays Merced delayBy Lisa DiCarlo May 30, 1998 |
As first reported by PC Week Online,
Intel Corp. Friday afternoon officially acknowledged a
six-month delay in delivering its first 64-bit processor,
code-named Merced, a decision that sent ripples through
the computer industry. The chip, originally due in late 1999, is now due around mid-2000, the Santa Clara, Calif., company said in a vague statement. |
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Intel stock keeps sinkingBy Suzanne Galante June 1, 1998 |
As if an El Niño had hit Wall Street,
the past year has been a long stormy season for Intel's
stockholders. It's not over yet. The chipmaker's stock continues to fall, dropping to 68.9 in early morning trading today, a 2.5 percent drop from its close Friday of 71.4. During the past 52 weeks, the chip giant's stock has fluctuated between 70 and 100--most recently lingering in the low 70s. |
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Intel Reportedly Faces Antitrust LawsuitBy Ismini Scouras May 29, 1998 |
Intel Corp. last week said it will
continue to cooperate with the Federal Trade Commission,
which, according to published reports, is expected to
file an antitrust suit this week against the chip maker
for abusing its leadership position in the microprocessor
market. The lawsuit will reportedly accuse Intel of withholding details about its microprocessor intellectual property from OEMs with which it is currently in patent and product-related disputes, the reports said. |
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FTC: Nothing against Intel--yetBy Reuters May 29, 1998 |
The Federal Trade Commission has no
meeting set next week at which it could bring charges
against Intel, although that could change, according to a
recorded FTC telephone message late today. Sources familiar with the case have said the FTC staff is close to recommending that the commissioners bring charges that Intel abused its market power to hurt its rivals. As the world's biggest semiconductor company, Intel supplies the chips that run 80 percent of all personal computers. |
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Intel Antitrust Suit Would Be Hard To WinBy Mary Mosquera May 30, 1998 |
The Federal Trade Commission may be
building its antitrust case against Intel on quicksand --
using questionable theories that are likely to fall short
on appeal, said a legal expert on Friday. Those familiar with the FTC's Intel investigation said if the government acts, it will probably draw from an April ruling by an Alabama federal district court in a case brought by workstation maker Intergraph against the chip manufacturer. |
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AMD
introduces K6-2 with little PC support
|
AMD has finally introduced its K6-2
processor but could only produce two major PC
manufacturers which will support it, today. The
companies which will ship products are IBM and Fujitsu, a
senior AMD David Somo, director of product marketing for the chip group at AMD said: "IBM and Fujitsu will introduce systems and we have many regional partners. All leading PC manufacturers are evaluating the K6-2." |
|
AMD tunes K6-2 for digital video, audio, 3-DBy David Lammers June 1, 1998 |
Taking its competitive struggle with
Intel Corp. to the next level, Advanced Micro Devices
Inc. unveiled its K6-2 processor here and at the E3
gamers show in Atlanta this past week, with a new
instruction set, called 3DNow, optimized for 3-D gaming
and digital video and audio. The faster CPU, based on a 0.25-micron process, and the enhanced instruction set are aimed at the so-called "Christmas build cycle" for mainstream desktops. The older K6 processor will compete against the Celeron from Intel and other MPUs in the low-cost segment of the market. |
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Processor prices plunging for summerBy Michael Kanellos May 29, 1998 |
Processor prices will plunge 15 to 20
percent in July as Intel and rival Advanced Micro Devices
make deep cuts, part of an ongoing market share battle
that will lead to more powerful and less expensive PCs. Many speed grades of both companies' processors are already selling substantially below posted prices due to a surplus in the market. In turn, this is leading to strong discounts on "white box" or house-brand computers. |
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Today's Related Stories | ||
Problems delay Merced chipBy Michael Kanellos May 29, 1998 |
Merced, the 64-bit processor from Intel,
will be delayed about six months, a major blow to
workstation and server makers such as Hewlett-Packard
that are betting heavily on the chip. The delay appears to be the result of a manufacturing problem, rather than a problem with the chip's design, according to Dean McCarron, principal analyst at Mercury Research. Intel has told people that the company "is trying to get a better handle on the manufacturing process," he said. |
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Intel to delay release of MercedBy Lisa DiCarlo May 29, 1998 |
Intel Corp. will announce next week that
its first 64-bit processor, code-named Merced, will be
delayed by about six months to mid-2000. The chip was originally expected to be delivered in the second half of 1999, but process management issues and possibly technical problems have pushed back its release, according to sources. |