AMD takes lead in megahertz race
CMP Media Inc. - Friday, December 03, 1999
Dec. 03, 1999 (Computer Reseller News - CMP via COMTEX) -- Sunnyvale,
Calif.-Advanced Micro Devices Inc. last week again jumped ahead of Intel Corp. in
the megahertz race with the launch of a 750MHz Athlon chip.
The new Athlon tops the fastest chip from Intel, the 733MHz Pentium III. OEMs
planning to offer systems based on the new processor include Compaq Computer
Corp., Houston, and IBM Corp., Armonk, N.Y.
"With the 750MHz AMD Athlon processor, AMD has rolled out the fastest x86
processor of the millennium," said Dana Krelle, vice president of marketing at AMD.
The megahertz battle between AMD and Intel heated up with the launch of Athlon
this summer. In October, AMD held the lead with a 700MHz Athlon, but Intel sped
ahead with its 733MHz Pentium III.
The new Athlon is AMD's first processor built on the advanced 0.18-micron
manufacturing process. Intel, Santa Clara, Calif., launched an array of Pentium III
processors produced on 0.18-micron process technology in October. The process
produces smaller chips that run faster and cooler.
The 750MHz Athlon costs $799 in volume quantities.
For low-priced PCs, AMD launched its fastest K6-2 chip, a 533MHz processor. The chip costs $167 in
volume quantities. Compaq said it plans to use the chip in an upcoming Presario Internet PC. Intel's
fastest chip for budget PCs is the 500MHz Celeron.
With Athlon, AMD appears to be on a roll. The introduction of the 750MHz version was a quarter ahead
of schedule and the company expects to launch an 800MHz Athlon in the first quarter of next year.
In early 2000, AMD also plans to introduce the K6-2+, which adds integrated Level 2 cache. The chip
will be built on 0.18-micron process technology.
Jerry Sanders, AMD chairman and chief executive, told analysts last month that the company expects a
strong fourth quarter based on strong demand for its processors and flash memory.
AMD, based here, is counting on its Athlon processor to break out of the low-cost PC market and into
high-performance markets and higher average selling prices. Despite earlier availability issues with
supporting motherboards, the chip is proving popular, said company executives.
Customers are clamoring for Athlon-based systems, said Ted Chen, owner of Bay Area Micro, a Milpitas,
Calif.-based VAR. Chen said his company is selling more of the AMD systems than Intel-based systems.
"More than two-thirds of our systems [sold] are Athlon-based," he said.
Motherboards supporting Athlon are generally available now, he added.
The megahertz battle between AMD and Intel will continue into the new year. Intel is expected to
introduce a 750MHz Pentium III in the first quarter and boost the CPU's speed to 800MHz in the second
quarter.
Both companies have said they will reach 1GHz next year, and are racing to be the first to reach that
milestone.
AMD will launch a 1GHz Athlon in the second half of 2000, Sanders said. In that same time frame, Intel
is expected to introduce a new 32-bit chip code-named Willamette, operating at clock speeds faster than
1GHz. However, sources said Intel also is working to crank up its Pentium III to 1GHz.
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