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This Week's x86 Headlines
All other stories and details below
C/Net FTC has Intel "talking points"
C/Net Intel set back in court
InfoWorld Electric Another start-up targets Intel's x86
Intel Corporation Intel Introduces New PentiumŪ II Xeon
PC Week Online Bug puts crimp on Xeon plans
ZD Net News HP joins non-Intel pack, will use AMD chips
C/Net Intel to shut plants temporarily
   

 

x86 Weekly News

Collected By Robert R. Collins

Week of June 29, 1998

Older News

July 2, 1998

Intel to shut plants temporarily

By Michael Kanellos

July 1, 1998
C/Net

Intel will temporarily close two of its chipmaking plants for nine days beginning this weekend as it starts a "voluntary separation" program to reduce its workforce, CNET NEWS.COM has learned.

The temporary plant closures--to affect 1,700 workers--and the job reduction are aimed at cutting costs in a slower-than-expected market. Closing the fabrication facilities will help reduce chip supplies, while the employee severance program will reduce the overall headcount.

See Today's Related Stories

Centaur/IDT wins $500 PC customer
Millenium early out of the traps with sub-$500 integrated range

July 2, 1998
The Register

A US company has said it will ship Centaur/IDT's WinChip processors in its machines. Millenium Electronics is offering a sub-$500 system using the processor.

PCs the company will ship include systems running at 180MHz, 200MHz, 225MHz and 240MHz, with the first two incorporated in the sub $500 market.

The systems, dubbed the NetRam PCs, will include integrated video and SoundBlaster sound, said Millenium.

 

Intergraph dispels Intel's claims

By Reuters

July 1, 1998
C/Net

Intergraph president Jim Meadlock minimized the importance of Intel patent counterclaims made earlier this month against the Huntsville, Alabama, company, as the workstation maker projected that second-quarter revenue will be flat with the first quarter due to its patent infringement lawsuit the chipmaking giant.

"If the patents are so pertinent, it looks like they would have mentioned them some time during the past two years of negotiations and litigation," said Meadlock in a statement.

 

Intergraph Flings One Back At Intel

July 1, 1998
BootNet

Intergraph fired another salvo at Intel this week as the two companies continue to push their legal fight into the court of public opinion.

Intergraph CEO Jim Meadlock downplayed Intel's countersuit (alleging patent infringement) as immaterial and a ploy. Meadlock said that even if Intel's claims of infringement were true the financial impacts are far less than what Intergraph believes it is owed from Intel.

 

Xeon Could Boost Unix For Intel

By Andy Patrizio

July 1, 1998
TechWeb

Now that Intel has raised the curtain on its Pentium II Xeon chips, many are wondering which operating system will be the gas for the hot-rod computers due later this year from Compaq, Dell, and others.

The answer depends on who you ask.

Analyst opinion is split between Windows NT and Unix. Some say NT's dominance is inevitable, while others believe Xeon offers Unix a chance to make significant inroads in the Intel market.

 
Today's Related Stories

Intel shuts two plants for nine days
Market forces start to bite harder as workers get extra independence

July 2, 1998
The Register

Intel is to shut down two plants for a nine day period, starting this July 4 weekend - 1,700 workers in two fabs at Aloha, Oregon will be sent home without pay, and the legend of Intel as a company all of whose fabs run flat-out all the time will be dispelled.

Both of the fabs currently operate 0.35 micron technology, although one is being refitted to run 0.25 micron. Intel said its reasoning behind the closures was market conditions, but while chips built with older processes will be less in demand than 0.25 micron, this isn't really where Intel's problems lie.

 
July 1, 1998

HP joins non-Intel pack, will use AMD chips

By Robert Lemos

June 30, 1998
ZD Net News

The last Intel Corp. loyalist in the retail market gave in on Tuesday, as Hewlett-Packard Co. said it would put an Advanced Micro Devices Inc. processor in two new retail PCs.

HP's move to include the AMD K6-2 in products marks the end of significant resistance in the retail market to non-Intel processors, as HP was the last of the top four retail PC makers to use only Intel processors.

"Customers are looking for another price cut," said Matt Sargent, industry analyst with market survey firm ZD Market Intelligence, a sister company to ZDNN. "You really can't stay with Intel-only and remain competitive in the market."

See Today's Related Stories

Intergraph expects flat quarter, blames Intel
Legal fight is proving a drain on revenues

July 1, 1998
The Register

Intergraph said that it would report flat turnover for its third quarter, compared to the $246 million it turned over in its first quarter.

That means the company is likely to post a loss. In its second quarter period last year, it turned in $288.6 million but made a loss of $16 million.

Intergraph has also warned that its third financial quarter is likely to be affected adversely, and has cited its continuing legal fight with Intel as one of the major factors affecting its turnover and profits.

See Today's Related Stories

Rest of '98 key for Intel

By Michael Kanellos

June 30, 1998
C/Net

The first half is over, and it hasn't been pretty.

Slowing demand, lower prices, and increased competition over an ever-increasing array of products have prompted a number of analysts to reduce their earnings estimates for Intel in recent weeks. The company is expected to report earnings of approximately 62 to 65 cents a share on slightly lower revenues when it delivers its financial results on July 14, down from earlier predictions of 69 cents a share.

 

Judge rebuffs Intel's request for FTC clarification

By PC Week Online Staff

June 30, 1998
PC Week

Intel Corp. lost the first round of its current bout with the Federal Trade Commission yesterday when a judge ruled that the chip giant must respond to the government's antitrust lawsuit by July 13 without further clarification of the charges against it.

In a request filed June 19 to James Timony, an administrative law judge with the FTC, in Washington, Intel asked that the agency clarify in which markets it alleges that Intel has a monopoly.

 
Today's Related Stories

HP adopts AMD chips

By Michael Kanellos and Brooke Crothers

June 30, 1998
C/Net

Hewlett-Packard launched a line of home PCs using processors from Advanced Micro Devices, becoming the third top-tier vendor to adopt chips made by one of Intel's closest rivals.

Some of HP's newest Pavilion models will use AMD’s K6-2, which is designed to handle multimedia applications such as 3D graphics better than the standard K6 processor. The new models will come with 300- and 333-MHz versions of the K6-2.

 

AMD wins HP Pavilion for K6-2
Company claims major victory, but HP still swings both ways

July 1, 1998
The Register

AMD has scored another win with its K6-2 processors. Hewlett Packard said that it will use 300MHz and 333MHz version of the 3D, socket seven processor in two of its Pavilion consumer PCs. Last month, IBM said it would use the K6-2 chip in some of its Aptiva machines.

HP said that the models using the K6-2 are the Pavilion 6330 and the Pavilion 6550. The machines come with 512K of level two cache, 48/64Mb of synchronous DRAM, 4/8Gb hard drives, 24-speed CD drives and built-in 56K fax modems.

 

HP to use AMD's K6-2 MPU

By Will Wade

June 30, 1998
Semiconductor Business News

Advanced Micro Devices Inc. here today announced it has landed another major design win for its K6-2 microprocessor in an agreement to supply the low-cost MPU to Hewlett Packard Co. for a line of Pavilion PCs.

This agreement is the latest step in AMD's efforts to lock in as much as 30% of the central processor market for desktop PCs by 2001. AMD's processors are now used in desktop computers from Compaq Computer Co. and IBM Corp., and the Sunnyvale-based chip makers said it expects to see more design wins in the future.

 

Intergraph Continues Intel Blame Game

By Gabrielle Jonas

June 30, 1998
TechInvestor

Intergraph shares fell Tuesday after the company said it will report second quarter revenue flat compared with the previous quarter.

Intergraph (company profile) laid the blame squarely on the shoulders of Intel, with which it is engaged in a lawsuit. Shares of Intergraph [INGR] closed down 5/16 to 8 9/16 on the news, while Intel [INTC] stock fell 1 11/16 to 74 1/8.

For the first quarter, Intergraph posted a loss of 67 cents a share on $245.8 million in sales. According to First Call, analysts were expecting the company to show a loss of 17 cents per share in the second quarter.

 

Intel suit to hurt Intergraph

By Jeff Pelline and Michael Kanellos

June 30, 1998
C/Net

Intergraph said today that its projected second-quarter revenues will come in flat compared with the first quarter, blaming slower-than-expected recovery related to its lawsuit against Intel.

"Based on the current level of cooperation from Intel, Intergraph now expects the revenue recovery to be delayed by an additional quarter," the company said in a statement.

 
June 30, 1998

Intel set back in court

By Michael Kanellos

June 29, 1998
C/Net

Intel suffered a minor setback Friday when an administrative law judge rejected the chipmaker's motion to compel the Federal Trade Commission (FTC) to define the issues in its antitrust case.

Intel was seeking an order that would compel the commission to state which markets it believes Intel has been inflicting unwarranted monopoly power.

 

FTC spin-doctors put best face on Intel action
Stodgy government agency borrows DoJ's approach

June 28, 1998
The Register

The Federal Trading Commission (FTC) has issued an extraordinary 'white paper' to key academics and legal brains in the US, in an apparent attempt to 'spin-doctor' comment on its action against Intel.

The paper (available at http://www.ljx.com/LJXfiles/antitrustsuits/ftcrelease.html) goes some distance further than the FTC has so far traveled in the actual antitrust suit, but is regrettably in many areas only semi-intelligible. For example: "Does this case involve in expansive reading of monopolization law?" Do you expand if you read antitrust law? Bill Gates' famous antitrust dictionary may be needed, but we suggest you read the document, switch on Word grammar checking and then marvel at how little is underlined in green before you run off to Microsoft for help.

 

Intel rolls out Xeon server chip line
Back to those old high price, high margin CPUs, company hopes

June 28, 1998
The Register

Intel today unveils its long-awaited Xeon server chip with the support of a bevy of hardware vendors, including IBM, Compaq and Dell.

The introduction by Intel will be of a 400MHz processor, with the price of the processor at an estimated $1,120 when bought in units of 1,000.

Last week, Intel acknowledged there was an "erratum" caused by conflicts between the processor and the chip set which supports it, but claimed that it already had a workaround being tested by its OEMs. Intel hopes to make substantially larger margins on Xeon processors than on its Pentium II and Celeron range of CPUs, despite the fact that the Slot Two devices use substantially the same technology as its less expensive devices.

See Today's Related Stories

Xeon forces rivals to deal

By Robert Lemos

June 29, 1998
ZD Net News

Intel's newest processor is giving its aristocratic server and workstation rivals the willies. Despite a price considered hefty in the PC industry, the Xeon manages to undercut its well-heeled competitors.

"When you look at the performance and the price of Xeon-based systems, it certainly beats other processors," said Alex Yost, spokesman for IBM Corp.'s Netfinity group. His company also manufactures the PowerPC -- used in Macs and high-end servers and workstations.

Looking for a piece of the PC server and workstation pie, Compaq Computer Corp. , Hewlett-Packard Co., and IBM turned out at the Intel event, despite the fact that the three companies make processors that will most likely be undermined by Intel's Xeon.

 

Exit Pentium Pro, Enter Xeon

By Andy Patrizio

June 29, 1998
TechWeb

Intel marks the end of the Pentium Pro and the beginning of Intel's push into enterprise computing Monday with the release of the Pentium II Xeon chips.

The Xeon family is not significantly different from the current Pentium II line because it uses the same P6 core and 100-Mhz input/output bus. But the Xeon does have a larger cache -- up to 2 megabytes of Level 2 cache -- which runs at the same clock speed as the central processing unit (CPU).

 

Xeon has chipset problems, releases Xeon anyway

June 29, 1998
U-Geek

Intel Corp. admitted to problems in their 450NX chipset designed to work with the Xeon chip and in motherboards running up to four processors at once. The 450NX chipset, and thus any configurations containing the chipset, will be delayed by a few weeks. The 450GX chipset is still on track and configurations designed to handle one or two Xeon processors should not be affected.  

Intel chip out amid problems

By Michael Kanellos

June 29, 1998
C/Net

Computer makers joined Intel in announcing new corporate lines based on the Xeon Pentium II processor, though a bug and relatively scarce supply may delay the most powerful multiprocessor systems.

A glitch that manifests itself when Xeon chips are used in 4-processor server configurations will delay final testing of those machines until approximately July 17. As a result, "4-way" servers from direct vendors such as Dell won't be out until about the middle of next month, while traditional vendors such as IBM will release systems in two to three months.

 

USB bandwagon finally appears ready to roll

By Peter Clarke

June 29, 1998
EE Times

"There are 50 million PCs out there with USB connector ports. Most of them are totally empty."

That's how Nathan Brookwood, an analyst at the Gartner Group's Dataquest Inc. market-research consultancy, summed up the scant impact the 12-Mbit/s Universal Serial Bus has had in two and a half years of existence. Others put the number of PCs with empty USB host ports as high as 60 million, but according to most industry watchers USB peripherals are on their way.

 

Intel plows ahead

By C/Net Staff

June 30, 1998
C/Net

Intel's pitching improved chips at the high-end market, while cutting costs at the low-end. It has released a Pentium II-style processor intended for high-end workstations and servers. Xeon can utilize four processors at once. But a bug is delaying the debut of the fastest "4-way" servers. The chip will allow the company to recover lost profit margins in the low end of the PC industry. In the meantime, reducing the cost of processors for portable PCs paves the way for more Pentium models around the closely watched $1,000 mark. Many linked articles from this article
Today's Related Stories

Intel goes hardcore with Xeon
Company predicts 8-way systems by end of the year

June 30, 1998
The Register

Intel duly unveiled its Xeon processor in London today and claimed what it described as unprecedented support of 18 PC and midrange vendors for its Slot Two solution.

But the company said that the Pentium Pro still has a life, as corporate users move from the old design to the new.

Rob Eckelmann, MD of Intel's EMEA group, said that the introduction of the Xeon marked a change from its previous architectural designs. "We're moving into areas which are real hardcore enterprise computing," he said. "What has been a vertical market has become much more homogeneous. This is very much a solution product, including software support and manageability features."

 

Intel formally introduces Xeon

By Carmen Nobel

June 29, 1998
PC Week Online

All the publicity about a recently discovered bug didn't stop Intel Corp. from formally introducing its long-awaited Pentium II Xeon processor for servers and workstations.

At a press event here today, the company announced several benchmark test results intended to show that Xeon is indeed better, smarter and faster than its Pentium predecessors.

 

Intel launches Xeon MPU to target server and workstation segments

By Will Wade

June 29, 1998
Semiconductor Business News

Intel Corp. today introduced its latest microprocessor, a 32-bit chip aimed at the high-end server and workstations markets. This further indicates the company's strategy to offer differentiated products for each major market segment.

The launch at company headquarters here was slightly marred by the delayed release of one version of the new Pentium II Xeon chip, after the company conceded last week that there was a bug in the device and it would require another three weeks of testing (see June 25 story ).

The 400 MHz Xeon features a 100 MHz system bus and a large L2 cache, and Xeon-based systems can be configured to run up to eight processors in parallel. However, it is the four-way configuration, using the 450NX chipset, that contains the glitch, and which will not be available until next month.

 

Intel Renews Push Into Server Market With Xeon Intro

By Mark Hachman

June 29, 1998
Electronic Buyer's News

Silicon Valley Intel Corp. signaled a renewed push into the workstation and server marketplace today by formally launching its Slot 2 microprocessor, the Xeon.

Two versions of the Xeon were introduced: a 400 MHz chip with 512 Kbytes of level 2 cache for $1,124; and a 400 MHz version with 1 Mbyte of cache for $2,836. Prices reflect 1,000-unit quantities.

Customers said they would begin to ship two-way and four-way servers about the third quarter of this year, because of the complexity of their products, as well as the acknowledged Xeon erratum.

 

Intel enters high-end market with Xeon debut

By James Niccolai and Elinor Mills

June 30, 1998
InfoWorld Electric

Accompanied by the usual abundance of vendor support, Intel introduced here Monday its new Pentium II Xeon processor, designed to run mid-range and higher-end servers and workstations.

The chip's larger and faster Level 2 cache, 100-MHz system bus and multiprocessing capabilities allow systems to handle demanding applications including online transaction processing, corporate data warehousing, digital content creation, and electronic and mechanical design automation, Intel officials said.

"This technology will enable systems based on Intel's architecture to extend further into the enterprise, where Intel has not been before," said John Minor, vice president and general manager of Intel's enterprise server group, speaking at a launch event at Intel's campus.

 
June 29, 1998

FTC has Intel "talking points"

By Dan Goodin

June 26, 1998
C/Net

When the Federal Trade Commission sued Intel on June 8, it distributed the complaint and a press release describing the case to all who were interested.

But for an elite few, the FTC distributed something more: a silver-tongued white paper providing "talking points" for academics and other legal pundits who talk to the press.

Other Related Stories

The Intel Talking Points

FTC Mulls Intel Demand As Hearing Nears

By Edward F. Moltzen,

June 26, 1998
Computer Reseller News

A spokeswoman for the U.S. Federal Trade Commission said the government has not responded -- and may not respond -- publicly to Intel's demand for more specifics in its antitrust case prior to the first administrative hearing on the matter.

The FTC, which is normally tight-lipped, was served earlier this week with papers from Intel (company profile), in Santa Clara, Calif., demanding the government offer a detailed response as to the market the chip maker dominates, after the commission said Intel wrongly used its monopoly power to strongarm other companies out of litigation.

 

Another start-up targets Intel's x86

By Andy Santoni

June 26, 1998
InfoWorld Electric

Yet another semiconductor company is planning to take on Intel with a low-cost x86 clone, readying a low-power chip aimed initially at $1,000 notebooks.

Rise Technology, based a stone's throw from Intel's headquarters in Santa Clara, Calif., will describe its chip in detail for the first time at the Microprocessor Forum, in nearby San Jose, this October.

"The mP6 is an x86-compatible processor targeted at the sub-$1,000 PC market," said Keith Diefendorff, editor in chief of Microprocessor Report, in Sunnyvale, Calif. With its low-cost focus, the new CPU will more likely compete with other Intel competitors than with Intel itself, Diefendorff noted.

 

Bug puts crimp on Xeon plans

By Carmen Nobel

June 26, 1998
PC Week Online

A bug that will delay the shipment of four-way Pentium II Xeon servers does not seem to be causing too many headaches among organizations anticipating systems based on Intel Corp.'s next-generation processor. The bug in the 450NX chip set, which causes crashes or spontane-ous reboots in servers with four or more Pentium II Xeon processors, could delay the delivery of some four-way systems by up to two months, said officials at several server makers.

Intel, of Santa Clara, Calif., sent a letter to server manufacturers this week saying the 450NX bug was easily fixed by a flash ROM update, which would be "validated" by July 17.

 

Intel Introduces New PentiumŪ II Xeon

June 29, 1998

Intel Corporation

Intel Corporation today introduced a new family of branded processors designed to meet the demanding requirements of mid-range and higher servers and workstations. Consistent with Intel’s strategy to design and deliver unique processor products targeted for specific market segments, the new PentiumŪ II Xeon™ processors feature technical innovations specifically designed for workstations and servers which utilize demanding business applications such as Internet services, corporate data warehousing, digital content creation, electronic and mechanical design automation. In a show of broad industry support, providers of advanced application and operating systems joined with leading workstation and server vendors to showcase the performance of the Pentium II Xeon processor at today’s introduction.  

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