Online News, 09/24/99 03:48 PM)
Intel delays launch of high-end PC chip set By Tom Spring, PC World
In a last-minute change of plans, Intel Corp. has postponed the launch of its highest-performance PC chip set, previously scheduled for Monday.
Calling system vendors last night, Intel acknowledged memory problems associated with the Rambus memory design in its 820 chip set. Intel reportedly found a "memory-bit error" that curtails top memory capacity and speed.
The stumble will impact high-end computers designed to run the fastest Pentium III processors. In this niche, "everybody is going to be reeling: Compaq, IBM, Hewlett Packard, Dell and Gateway," said Kevin Knox, Gartner Group Inc. research director.
The Intel 820 system chip sets support a faster system bus (133 MHz vs. 100 MHz) and 4X Accelerated Graphics Ports (AGP) as well as Rambus DRAM (RDRAM) and other memory architectures.
Rambus is the company that designed and licensed RDRAM technology to memory manufacturers. The 820 chip set is expected to boost memory speeds as high as 800 MHz.
Compaq was contacted late Thursday by Intel and told that the 820 chip set was flawed. Compaq had planned to announce a line of DeskPros, scheduled to be available next month, but those plans have been postponed, says Compaq public relations manager Jim Cortese.
"Intel contacted us and said it was experiencing technical problems with their 820 chip set," Cortese says. "That's all we were told."
Some observers have speculated that system vendors may need to rebuild large numbers of PCs or ship them with performance limitations. But Compaq doesn't face that problem because the final chip sets haven't yet arrived, Cortese says.
IDC's Knox says Intel's misstep will rock already contentious relations between Intel and PC makers who have been bickering over the pricey 820 chip set. "We might see a lot of computer makers going with alternative chip set makers," Knox said.
Micron has already made that move -- its next-generation computer platform won't be based on Intel's upcoming 820 system chip set, but rather a VIA Technologies alternative. The move, Micron says, will save customers between $200 to $300 over systems with the 820 chip set, without sacrificing system performance.
While the 820 delay is major news for customers demanding absolutely peak performance, it is a nonevent for most customers, Knox said.
"Nobody was betting on the 820 being the leading chip set for another six months," he says, since conventional systems offer plenty of horsepower for most applications.
Vendors will proceed with plans to announce lower-cost systems based on Intel's 810e chip set on Monday.
This silicon targets budget Pentium III PCs. Like the existing 810 chip set for Celeron systems, it integrates adequate but not stellar AGP graphics to save cost. The 810e doesn't support RDRAM, and you can't upgrade graphics later. It supports a 133-MHZ or older system bus, PC-100 memory and UltraDMA/66 hard drives.
(Additional reporting by Yardena Arar.)
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