More good press:
CHEAP CHIP
IDT's WinChip C6 - or IDT-C6 - comes in speeds of 180 MHz and 200 MHz.
Has advantage in mobile computing sector because it is compatible with notebook PCs.
Reduced performance only drawback.
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Integrated Device Technology (IDT) says its low-cost microprocessor will be the cheapest chip on the market.
The WinChip C6, also known as the IDT-C6, comes in speeds of 180 MHz and 200 MHz and is equipped with MMX (multimedia extension).
Designed by IDT's wholly owned subsidiary, Centaur Technology, WinChip C6 is geared for under-US$1,000 PCs and sub-$2,000 mobile computers running Microsoft's Windows business operating systems.
Texas-based IDT aims to supply motherboard makers and third-tier vendors which are mostly "no-name" or "white box" PC resellers that produce 500 to 10,000 units per month.
IDT said it would unveil 225MHz and 240 MHz chips next month, with 266 MHz and 300 MHz models due next year. Microprocessors are the "brains" of computers.
As the newest Intel clone maker, IDT joins the ranks of Cyrix and Advanced Micro Devices (AMD), each of which have less than 10 per cent of the $18 billion microprocessor market. IDT hopes to hold a 5 per cent share within three to five years.
"Our strategy is a little bit different than Intel, AMD and Cyrix," said Jamal Haider, Centaur marketing director.
Mr Haider said there was a grey market for cheap chips where top PC original equipment manufacturers (OEMs) sell excess stock to white box makers.
The IDT-C6 costs US$90 for the 180 MHz version and $135 for the 200 MHz model, which are both sold in 1,000 unit quantities.
Mr Haider said IDT was prepared to match the industry's quarterly price cuts which Intel initiated this year. AMD pledged to undercut Intel's reduced prices by at least 25 per cent.
IDT believed its microprocessor business would be profitable as its chip's small size - 30 to 60 per cent smaller than similar Pentium-class chips - resulted in lower production costs.
The IDT-C6 also had an advantage in the mobile computing sector because it could be used in notebook PCs, Mr Haider said. "Intel's mobile chip costs $150-$200 more than the desktop model."
However, the benefits of the IDT-C6 - which include a 50 per cent reduction in power and large on-chip cache (high-speed memory) - comes at a price: reduced performance. The simple, stripped-down chip lacks features such as fractional clock multipliers and out-of-order instruction execution which result in slower operations.
"Our floating point performance is not as good as Intel," Mr Haider said. However, IDT plans to release next year an advanced chip, the C6+, that will have substantially better performance than (Intel's) Pentium MMX with 3D graphics, being equipped with the ability to run games faster.
Mr Haider denied that Microsoft had put money towards the development of the IDT-C6, despite the fact that the chip is "optimised" for Windows software.
The Windows logo is featured on IDT's "powered by Win Chip" stickers, which resemble the "Intel Inside" stickers found on Intel-powered PCs and laptops.
The reason for IDT's link with Windows was due to the software's popularity, Mr Haider said: "All other {operating systems} run fine on the processor." IDT has secured supply deals with several Taiwanese motherboard makers such as Asus, Apollo and Soyo, but it will not release names of PC vendor partners until next month.
Industry watchers believe the chips are destined largely for small Asian manufacturers. In Asia-Pacific, no-name computers make up 20 per cent of total PC sales, according to Cherry Velarde, Dataquest PC industry analyst.
They were popular in China and Taiwan, "where there is high availability of low-cost components", she said.
IDT plans to enter the mainland market next year.
The establishment of IDT as a recognisable and reliable supplier of microprocessors would weigh on acceptance of the chip by consumers and PC makers, said Kelvin Fu, Dataquest semiconductor analyst.
He said it was "too early to tell" whether IDT could survive in the highly competitive microprocessor market.
Mr Fu believed that any gains by IDT would come at the expense of Cyrix because of AMD's reputation and marketing ability.
Mr Haider would not reveal how many chips IDT planned to produce.
He said IDT's foray into the microprocessor sector - in which Intel holds a nearly 90 per cent share - was part of the company's strategy to develop new products and expand business.
(Copyright 1997)
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