Intel Stops Shipment of Flawed Chip
SANTA CLARA, Calif. (AP) - Intel Corp. (NasdaqNM:INTC - news) stopped shipping a powerful chip for servers in April because of a flaw in its design, the company said Tuesday. The problem has been fixed, and production is scheduled to resume next month.
The problem with the 900-megahertz Pentium 3 Xeon chip can cause servers to freeze up and temporarily stop working, Intel spokesman Robert Manetta said. No server users have been affected - the flaw was found in a lab by a customer in March, Manetta said.
``Just to be safe, we did stop the shipments,'' he said.
The Pentium 3 Xeon chip is not the fastest Intel chip for servers, but it has extra memory. Manetta would not disclose how many of the chips have been sold, but he said the halt in shipments is not material to Intel's business.
In the meantime, Intel customers - server manufacturers - can switch to a 700-megahertz Xeon chip or wait until the fixed 900-megahertz models come out in August.
Intel shares lost $1.11, nearly 4 percent, to $27.79 on the Nasdaq Stock Market on Tuesday. The stock was up to $27.99 in extended trading. |
