Good news for Intel investors!
Intel to launch new Xeon chip By Tom Foremski in San Francisco Published: May 21 2000 21:03GMT | Last Updated: May 21 2000 21:06GMT
Intel, the world's largest manufacturer of semiconductors, will on Monday announce its most sophisticated microprocessor to date, which will significantly improve the performance of large websites and e-business applications.
The Intel Pentium III Xeon microprocessor will be used in multiprocessor server systems by computer manufacturers including Compaq Computer, Dell Computer, IBM and Hewlett-Packard.
Running at a speed of 700 MHz, the chip contains more than 140m transistors, compared with about 30m in Intel's desktop Pentium III microprocessors.
Up to 2 megabytes of memory on the chip will help boost server performance by almost 50 per cent. Intel expects the chip to be used in computers powering large websites.
IBM, the world's largest computer company, said it would use the latest Xeon microprocessor in a computer system that combines 64 of the devices, twice the amount of any competing system.
The chip will help Intel maintain high profit margins and balance out lower profit margins in its high volume Celeron microprocessor line.
Linley Gwennap, senior analyst at The Linley Group, a US microprocessor consultancy, said it would also help Intel compete against powerful microprocessors expected soon from Sun Microsystems and Hewlett-Packard, also aimed at server applications.
"This is a big step, Xeon was overdue for an upgrade, the last device was introduced about nine months ago," Mr Gwennap said.
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