David,
An answer to your question...This was taken
from Computer Reseller News.
IDT to unveil CPU to compete with low-end Pentium chips -- New
processors from Advanced Micro Devices, Cyrix put pressure on Intel
by Ken Yamada
Santa Clara, Calif. -- Integrated Device Technology Inc. is developing
Pentium-class microprocessors with the goal of attacking the low-end PC market.
Integrated Device Technology (IDT), a Santa Clara, Calif., manufacturer of
integrated circuits, is developing on its own a chip with features similar to
Intel Corp.'s Pentium microprocessors, said a source familiar with IDT's plans.
Consequently, IDT is anticipating that once the chips begin shipping, legal
action may be taken by Intel, which may view the chips as unauthorized Pentium
knockoffs. IDT plans to unveil the chips in May, the source said.
An IDT spokeswoman declined to comment on any future products.
The worldwide market for Pentium-class systems remains robust, leaving room
for Intel's competitors to make headway, industry analysts said. At the same
time, Intel, Advanced Micro Devices Inc. and Cyrix Corp. are expected to launch
their Pentium-successor chips this year. Intel calls its chip in this class
Pentium II.
Whenever Intel begins shipping a new chip, it slashes prices of older chips,
which causes a ripple effect throughout the industry. At that point, system
prices typically drop, as Intel begins emphasizing the new technology of its
latest chips. For many customers, however, systems based on older chips remain a
good buy.
IDT has been looking for a blockbuster product to pull it from the doldrums.
For the nine-month period that ended in December, IDT posted a 24 percent drop
in revenue to $394 million, compared with $519 million a year earlier. For the
same period, the company posted a loss of $44 million, compared with net income
of $98 million a year ago.
IDT makes chips and modules used in communications equipment, distributed
computing systems, PCs and office automation equipment.
Two of Intel's competitors appear to be building momentum. Early reviews of
new microprocessors from AMD and Cyrix continue to generate market interest. For
example, performance tests reportedly are impressive for AMD's K-6
microprocessor, which will compete against Pentium II. AMD plans to aggressively
price those chips below Intel's prices to gain market share quickly (CRN, March
24)
Intel's plans for its new chips were not affected by news about the
competition, said Albert Yu, an Intel senior vice president who oversees the
company's microprocessor products group.
Yu and other Intel executives spoke at an Intel-sponsored conference in San
Jose, Calif., last week, where they said Intel was heading a trend in innovation
that would result in a tenfold increase in PC multimedia performance over the
next three years.
But that claim was met with some skepticism. "I'll believe it when I see it,"
said Tom McCrystal, a vice president at Creative Perspectives Inc., a
Charlottesville, Va., VAR.
Separately, Intel plans to unveil today a new technology that significantly
accelerates start-up times of software applications. Called Application Launch
Accelerator, the software repositions data on hard drives, allowing the programs
to launch as much as three times faster.
Intel was considering how the technology may be turned into a product and
distributed, company executives said. The technology probably would be on the
market by the end of this year, though they would not say in what form.
David.... It sounds like IDTI is going to go head to head with Cyrix, AMD and Intel. I wonder what kind of repercussions this will have on
the IDTI and Intel relationship. Supposedly, Intel was planning to support fusion memory. Might this encroachment induce Intel to take retaliatory action?
Tom |
