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This week's x86 Headlines
All other stories and details below
The Register IDT-Centaur makes loss, cuts 400 jobs
WinChip fails to move fast enough against Intel
EE Times Intel to reveal details on StrongARM chip
The Register Pentium Pro on death row
Intel says socket eight Overdrive on way
EE Times Chip Makers Shocked By Copper Costs
The Register AMD completes K7 plan
Slot A taped out and 350MHz K6-2 ships in volume
InfoWorld Electric National Semiconductor to furlough entire workforce
Electronic Buyer's News Stock Soars On News That All Future Intel Chipsets Will Use Rambus

 

x86 Weekly News

Collected By Robert R. Collins

Week of July 27, 1998

Older News

July 31, 1998

National Semiconductor to furlough entire workforce

By Elinor Mills

July 31, 1998
InfoWorld Electric

National Semiconductor will furlough all of its workers in the coming months to help cut costs during a "tight" financial period, a company spokesman said Thursday.

All of the company's 13,000 employees worldwide have been asked to take 10 days off, as vacation or unpaid leave, between Sept. 1 and Dec. 1, said spokesman Bill Callahan.

"It's kind of a bad market right now. The economy is still suffering the after-effects of the Asian situation," or financial crisis, he said. This furlough plan "lets the company get expenses out of the way, get vacations off the books during the second quarter. And it improves the bottom line."

 

Intel developing Merced software

By Kurt Oeler

July 30, 1998
C/Net

Although its first 64-bit processor has been delayed, Intel has been diligently assisting hardware and software vendors to optimize their products for its future chip architecture.

The effort seeks to advance the Xeon and especially the Merced chip as a platform for high-end corporate, or "enterprise," computing.

Now in its third year, Intel's Server Software Initiative taps specially chosen companies for two- to three-month projects that culminate in two weeks' of laboratory testing at one of four Intel sites. The chipmaker picks up the cost of participating in the program, whose price tag is undisclosed.

 

Motorola ready to make AMD chips

By Michael Kanellos

July 30, 1998
C/Net

The alliance between Motorola and Advanced Micro Devices appears to be getting stronger by the day.

AMD now says that Motorola is getting ready to manufacture its upcoming K7 processors, while the Intel rival will likely become a stand-in manufacturer for the diversified communications giant.

 

Cyrix accuses IBM of undercutting its prices
Companies' agreement on Cyrix chip fabbing gets fractious

July 30, 1998
The Register

National-Cyrix said today that IBM Microelectronics was undercutting it on price, even though the chip both companies are selling is the same.

Thomas Rothhaupt, marketing manager of Cyrix Europe, said: "IBM has always tried to sell below our price. Our agreement lasts until the end of 1999." IBM had even recruited the same distributors as National-Cyrix, said Rothhaupt, but there was little that his company could do to stop that.

 

National Semiconductor Will Idle Workforce

By Andrew Maclellan

July 30, 1998
Electronic Buyer's News

Responding to weak earnings and an unsettled outlook for the remainder of the year, Silicon Valley companies are coming up with various ways to trim costs without triggering further layoffs.

In an effort not to add to the semiconductor industry's mounting body count, National Semiconductor Corp., is asking its employees to take a voluntary furlough this fall in that company's latest cost cutting move.

National, Santa Clara, Calif., laid off 1,400 staff earlier this year, but found that its workforce reduction had not gone deep enough.

 

Stock Soars On News That All Future Intel Chipsets Will Use Rambus

By Jennifer L. Baljko

July 30, 1998
Electronic Buyer's News

Shortly after laying out its marketing objectives and financial goals to investors attending the BancAmerica Robertson Stephens’ conference here, Rambus Inc’s stock price climbed $9, or about 17%, from it’s opening price of $52.13 to $62.13 in mid-day trading Thursday.

The company’s president and chief executive Geoff Tate told investors that all future Intel memory chipsets will use Rambus, and that three OEMs are shipping Direct Rambus DRAM, with a fourth one expected to do so next week. Tate declined to name the latest company.

 
July 30, 1998

Bullish Sanders predicts AMD's return to profit in fourth quarter

By James Niccolai

July 30, 1998
InfoWorld Electric

Jerry Sanders, chairman and CEO of Advanced Micro Devices (AMD), made the bullish prediction here Wednesday that his company will return to profitability in the fourth quarter of fiscal 1998, helped by strong sales of AMD's K6-2 desktop processor.

Along with the rest of the semiconductor industry, AMD has been feeling the heat from the ongoing financial turmoil in Asia and fierce price competition in the desktop PC market which has driven down prices for microprocessors and other chips. Earlier this month, AMD reported a much larger than expected loss of $64.6 million for its second financial quarter of fiscal 1998 -- the company's fourth consecutive quarter in the red.

 

Profits, 450-MHz chips to come from AMD

By Michael Kanellos

July 29, 1998
C/Net

Advanced Micro Devices will release a 450-MHz version of the K6-2 and the first K6-3 chips toward the first part of 1999, and will turn a profit by this year's end, according to CEO Jerry Sanders.

The catch is that a return to black will require AMD to nearly double its market share in the next five months--an ambitious goal to say the least.

But AMD's technical and marketing plans stem from market realities, Sanders told an audience of investors and analysts at the BancAmerica Robertson Stephens in San Francisco today.

 

Fastest AMD chip in notebook

By Stephanie Miles

July 29, 1998
C/Net

Next month, Micro Express will introduce a new notebook featuring an AMD K6-2 processor and a large display for under $2,300.

The new notebook will come with a 300-MHz K6-2 (a Pentium II-class chip) and a 13.1-inch active-matrix display for $2,299, according to sources close to the Irvine, California, PC vendor. Similarly configured notebooks with a Pentium II sell for at least several hundred dollars more.

 

New Microsoft-Intel Spec Buries ISA, CD-ROM

By Andy Patrizio

July 28, 1998
TechWeb

Microsoft and Intel have finalized the PC 99 specification -- a baseline definition for design recommendations for PCs that will begin shipping next year.

PC 99 spells the end of two familiar technologies -- CD-ROM and the Industry Standard Architecture (ISA) bus. The spec is co-authored by Microsoft and Intel, but has been reviewed by more than 200 independent hardware vendors.

 
July 29, 1998

AMD completes K7 plan
Slot A taped out and 350MHz K6-2 ships in volume

July 28, 1998
The Register

A reliable source close to chip company Advanced Micro Devices (AMD) said today that it has completed testing of its future K7 product.

The processor, which will be produced in its Dresden, Germany fabrication plant, is on target for early release in 1999, the source said.

And other processors will be introduced by AMD in the build up to the K7, which uses Slot A architecture, licensed from Digital.

 

Chip market buzzing

July 28, 1998
C/Net

As it's done for a year and half, Advanced Micro Devices matched Intel price drops by lowering processors to undercut its rival by 25 percent. Meanwhile, Motorola introduced speedier PowerPCs for the Macintosh, while Intel indicated it will move aggressively on the intelligent device market with its low-cost StrongARM line.  

AMD keeps its distance

By Michael Kanellos

July 28, 1998
C/Net

Just has it has done for over a year and half, Advanced Micro Devices has adjusted its processor prices to undercut Intel's by 25 percent.

Although the reductions siphon profits, maintaining pace with Intel has paid off for AMD in terms of visibility.

Since the beginning of the year, the K6 has been appearing in a wide range of new PCs from top-tier vendors such as Compaq and Hewlett-Packard, thereby gaining market share on Intel in consumer computers. Research firm PC Data recently reported that AMD held more than 50 percent of the market for sub-$1,000 systems in retail for June.

 

Intel dives into new chip line

By Michael Kanellos

July 28, 1998
C/Net

After months of speculation, Intel is moving full speed toward selling and developing processors for consumer-oriented electronic devices based on the StrongARM chip, an architecture that's completely different from its long-established PC chip standard.

Even as it launches plans to more aggressively market the current line of StrongARM
microprocessors, Intel is working on a succeeding generation of chips that will be twice as powerful, according to sources at the company.

 

Intel in talks with SCO
Speculation mounts that Project Gemini is up for grabs

July 28, 1998
The Register

Rumours are mounting that Intel is set to take over the Santa Cruz Organization, although the chip giant maintains it is "agnostic" about operating systems that run on its chips.

Both Intel and SCO today refused to comment on the speculation, but a senior source at the Santa-Clara based organisation said that if did happen, it would be a matter of months, rather than days.

The logic behind the talks is that Intel does not want its platforms to only use the Microsoft NT operating system. It has promoted SCO as the integrator of different Unix platforms.

 

Intel Rises On Upgrade

By Gabrielle Jonas

July 28, 1998
TechInvestor

Shares of Intel gained early Tuesday on a morning upgrade by Gruntal & Co., that raised the shares to buy from hold.

The analyst upping the stock was Mona Eraiba, a senior vice president at the New York City-based Gruntal & Co. Eraiba said in her research spot report that Intel's prices cuts of Monday convinced her "the company is escalating its drive to stimulate market demand for PCs, as well as reclaiming its market share at the low-end."

 

Intel pan-Europe franchises up for grabs
Distributors slog it out

July 27, 1998
The Register

Karma UK has emerged as a hot favourite to win a highly-prized Intel franchise, according to informed channel sources.

But Intel may make room for the company, a CHS subsidiary and Europe's biggest computer components distributor, by sacking one of its four existing UK distributors.

Franchises for broadband distribution of Intel processors are up for grabs, according to channel insiders.

 

Intel To Introduce Cheaper, Faster Chips

By Mitch Wagner

July 29, 1998
InternetWeek

Intel said it plans next month to introduce a 450-MHz Pentium II chip for desktop computers, overtaking the existing top-of-the-line 400-MHz PII microprocessor. Although the new chip is expected to appear in business computers, Intel timed its introduction so the chips can get into consumer PCs for the back-to-school and holiday shopping seasons, sources said.

The new chips are part of the Santa Clara, Calif., company's ( company profile) strategy for carrying the Intel line forward through 1999. Intel said it also plans this month to ship more powerful Celeron chips for low-cost PCs and new high-end server and workstation processors in the Xeon line.

 
July 28, 1998

StrongARM will extend Intel's segmentation strategy

By Andy Santoni

July 27, 1998
InfoWorld Electric

Intel plans to expand its segmentation strategy beyond PCs with the StrongARM microprocessor architecture acquired from Digital.

"The StrongARM architecture is a complementary extension to our existing microprocessor product lines," said Ron Smith, vice president and general manager at Intel's Computing Enhancement Group.

Intel will focus the StrongARM product line into markets that require low power and high performance. Key segments include PC companions, smart mobile telephones, and mobile point-of-sale devices, as well as digital TV set-top products and Web-enabled desktop screen phones. The StrongARM product line will also target embedded control segments such as soft modem banks, high-performance storage and RAID, adapter cards, and switches and routers.

 

Cyrix claims Intel forced to cut prices
AMD stays quiet on pricing strategy

July 27, 1998
The Register

The marketing director of Cyrix Europe said today that chip giant Intel was in a position where it was being forced to sell Celeron processors at or below cost.

Intel yesterday cut prices of its entry level Celeron 266MHz part to $80 when bought in units of one thousand.

Thomas Rotthaupt, at Cyrix-NatSemi Germany, said: "We consider this to be a reaction to the market situation. Celeron is not selling very well. We have products at a better price and a better speed than Intel and we will take action against its pricing when we see fit."

 

Intel cuts Celeron price by more than expected

By Mark Hachman

July 27, 1998
Electronic Buyers' News

Intel Corp.'s regularly scheduled price cuts contained an unexpected surprise, as tags on its Celeron microprocessors fell by larger amounts than expected.

Effective on Sunday (July 26), the price of a 266-MHz "Covington" Celeron without Level 2 cache is $86, which is believed to be Intel's lowest published price for a microprocessor. A 300-MHz version of the same Celeron chip will cost OEMs $112. Intel's previous road maps predicted that those chips in August would cost approximately $106 and $159, respectively. These prices, as well as all of Intel's other recent price changes, are based on quantities of 1,000 units.

 
July 27, 1998

IDT-Centaur makes loss, cuts 400 jobs
WinChip fails to move fast enough against Intel

July 26, 1998
The Register

Semiconductor manufacturer IDT, which owns the Centaur WinChip family, has released details of its first quarter and has posted a loss of $50 million on turnover of $134.5 million. Over four hundred jobs will go over the next six months.

The company blamed operating costs and sales and marketing programmes associated with the development of the WinChip x.86 family, and said it was taking steps to adjust its business models.

 

IDT Posts Disappointing First Quarter Results

By Amber Howle

July 24, 1998
Computer Reseller News

Integrated Device Technology (IDT) posted what president and CEO Len Perham called in a prepared statement disappointing first quarter results.

The Santa Clara, Calif.-based semiconductor company announced Wednesday a net loss of $50 million, or 61 cents per share, for its first quarter ended June 28. Earnings were 2 cents per share in both the immediately prior quarter and year-ago quarter.

 

Intel to reveal details on StrongARM chip

By Rick Boyd-Merritt and Peter Clarke

July 24, 1998
EE Times

At next month's Hot Chips conference that will convene here the paper on the StrongARM 1500 microprocessor will mark a significant new direction for Intel Corp. Intel will for the first time discuss a specific product it apparently backs. Prashant P. Gandhi, a senior engineer in the StrongARM and Bridges division of Intel's Computer Enhancement Group (Chandler, Ariz.), will detail the StrongARM 1500 as a part aimed at everything from set-top boxes and digital TVs to modem banks and video games.

The chip combines a 32-bit StrongARM 110 core with a DSP-like, dual-issue media processor in a single 60 mm2 die that draws less than 2.5 W at 2 V and runs at 300 MHz. Designers say the chip, which incorporates 3.3 million transistors and is built in a 0.28-micron process, can run MPEG-2 MP@ML video decoding and a software modem in parallel.

 

Pentium Pro on death row
Intel says socket eight Overdrive on way

July 25, 1998
The Register

Intel said today that it has formally decided to kill the Pentium Pro in favour of the Pentium II platform. It will honour existing orders and give its OEM customers six months to make new orders. See earlier story and Pentium Pro to meet early doom.

The processor will finally disappear in 1999. It is suffering a cruel and unnatural type of punishment, and will linger on death row for a little while yet, as Intel makes sure that vendors existing SMP systems are supported. There is no chance of a successful appeal against death sentence.

 

Chip Makers Shocked By Copper Costs

By Stephan Ohr

July 24, 1998
EE Times

Lucent is among the growing list of semiconductor makers considering how rapidly to use copper-interconnect materials on high-speed digital integrated circuits. While Lucent will inevitably turn to copper, it doesn't see the technology as cost-effective for the next generation of circuits, said Emelio Martinez, who heads interconnect research at Lucent's Bell Laboratories.

Martinez' disclosure came on the heels of dazzling introductions at the annual Semicon exhibition here in San Francisco, where expensive new equipment for copper took center stage. The price tags caught many by surprise.

 

Bugs, Debugs and Debuts

By Andreas Stiller

Volume 14, 1998
c't Magazine

Bugs rained on Intels Xeon parade, Acer enters the processor business, IBM is considering to license Alpha and Gary Boone is entitled to more microprocessor-inventor-laurels.

A few days before the official introduction of Intels new Xeon processor a rumor kept going around: Xeon has a huge bug. Intel confirmed this rumor eventually, but blamed the server chipset NX. Later they admitted however, that the crash causing bug did indeed affect the processor (Xeon-Erratum No. 37: DBSY). It supposedly comes into play when using the NX chipset in a four-processor configuration - and even then only in 'very configuration dependent environments'.

 

Intel and Microsoft push the 3-D software envelope

By Alexander Wolfe

July 24, 1998
EE Times

Foreseeing Hollywood-class computer graphics as the potential killer app that could reenergize the flagging mainstream PC market, Intel Corp. and Microsoft Corp. used the recent Siggraph '98 to disclose separate, ambitious research efforts dedicated to pushing the envelope in 3-D animation and rendering software.

The goal: to make 3-D graphics on systems with Intel CPUs and Windows NT a competitive threat to the Unix workstations that now dominate the high-end market.

 

Chips chopped as Intel prices drop
Great Satan breaches Sabbath by releasing price details

July 26, 1998
The Register

Intel has chosen today, Sunday, to release details of its price cuts on its range of processors and has slashed the price of its entry level 266MHz Celeron processor to $80/1000, while releasing details of its 450MHz Pentium II processor, available in a few days, which is now expected to cost $630/1000. The 300MHz Celeron drops in price from $130/1000 to $104/1000.

Rival AMD can be expected to cut its pricing in the next day or so to maintain its 25 per cent differential below Intel pricing, while NatSemi-Cyrix is also likely to follow suit in the next week, according to sources. On Friday, Intel announced it would kill off the Pentium Pro.

See Today's Related Stories
Today's Related Stories

Intel to cut Pentium II prices

By Michael Kanellos

July 24, 1998
C/Net

A new round of price cuts from Intel is expected this Sunday, while a 450-MHz chip--the fastest Pentium II yet--should hit the streets next month.

The reductions will be the latest in this year's flurry of pricing activity by the industry's leading chipmaker. The July round would be the fourth desktop processor price cut in 1998, and at least two more are scheduled for September and October. In past years Intel has cut prices four times in the whole year.

 

 

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