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Technology Stocks : Compaq

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To: hpeace who wrote (8562)11/5/1997 8:03:00 PM
From: Douglas Perkins  Read Replies (2) of 97611
 
steve, Here is what I was refering to:
AMD hints at partnership
with Digital
By Brooke Crothers and Michael Kanellos
October 14, 1997, 10:00 p.m. PT

update Advanced Micro Devices (AMD) unveiled
new K6 chips today and also hinted that it will
cooperate with Digital Equipment (DEC) in
technologies used in AMD's future K7 chip.

AMD revealed plans for enhanced versions of its
currently-shipping K6, dubbed the AMD-K6-3D
and the AMD-K6+3D. The chips improve the 3D
graphics capability of the K6, how the processor
talks to the rest of the computer system, and the
high-speed cache memory.

Separately, CEO Jerry Sanders showed in a slide
presented as part of his keynote speech at the
Microprocessor Forum conference that the K7
processor will use a cartridge design similar to
Intel's Pentium II processor and run at clock speeds
in excess of 500 MHz.

But probably of even more significance, AMD will
tap into Digital Equipment's Alpha processor
architecture to enhance the K7's design.
Specifically, AMD will use Alpha's "EV6 bus
protocol" in its K7 processor, AMD said. Alpha is
Digital's high-speed, 64-bit chip.

Greg Favor, a senior fellow at AMD, said that
conceivably this might mean that the K7 and Alpha
processors would achieve a certain level of
compatibility, essentially allowing both chips to be
used interchangeably on computer circuit boards,
referred to as "motherboards."

Analysts agree. "They [the K7 and Alpha
processors] could use the same chip set," said
Michael Slater, editorial director of the
Microprocessor Report, referring to the
accompanying chips that allow the processor to talk
with other components in the computer.

This would mean that the Digital Alpha chip and the
AMD K7 processor, and possibly AMD's
next-generation K8, could together present more of
a challenge to Intel's domination of the market.

Digital and AMD have enjoyed a good relationship.
Digital was one of the first PC makers to adopt
AMD's K6, and Digital has manufactured chips for
AMD.

"Hey, there's no doubt that the two companies have
a good relationship," said AMD's Favor.

Digital has sued Intel over alleged infringement of
processor patent technology, while AMD and Intel
are ferocious competitors in the processor market.

Meanwhile, the K6-3D chip is due in the first half of
1998 and the K6+3D is slated for shipment in the
second half of 1998.

The K6's new 3D technology adds 24 new
instructions for 3D graphics and other techniques
for enhancing the K6's ability to handle graphics.

AMD will also add a "Level 2" cache to the chips.
Typically, the level-2 cache is separate from the
processor. By integrating this very-high-speed
memory with the processor, performance can be
boosted dramatically. The chip will have a
whopping 21.3 million transistors.

Currently, Intel integrates a Level 2 cache into its
Pentium Pro, in a separate "cavity" next to the main
processor, and as a separate chip inside the
Pentium II processor cartridge.

AMD will also enhance the K6 by increasing the
speed at which it talks to the rest of the computer,
via the "system bus." At the moment, this bus
operates at 66 MHz; the improved K6 bus will
process at 100 MHz. The system bus is the conduit
for data which flows from the processor to the rest
of the computer.

AMD is referring to this technology as Super7.

Further, the raw "clock" speed of the K6 is
expected to go up to 350 MHz and beyond. AMD
is currently sampling a 266-MHz version of the K6
processor.

In other developments, AMD is also expected to
begin commercial shipments later this year of its first
true mobile version of the K6, according to industry
sources familiar with the development. The chip will
be based on 0.25 micron technology, the most
advanced production process now being used for
Intel-based processors. This shrinks the size of the
chip, allowing it to run faster using less power. Intel
is making its mobile Pentium processors on a similar
process.

AMD will price its mobile chips about 25 percent
below Intel prices, according to a source familiar
with the chip's rollout. "Customers will be on board
for the launch commensurate with the release," said
the source. AMD is currently shipping samples of
the chip to customers.

However, AMD will have to demonstrate that it can
produce chips in large numbers, that it will not be
hampered by low manufacturing yields. Low yields
caused K6 production to fall below expectations,
resulting in an overall quarterly loss of $31.7 million,
or 22 cents a share.

"It's a great chip, but if you can't produce them,
what's the use of all these announcements. The yield
problem continues to haunt them," said Carl
Johnson, president of Infrastructure, a consulting
firm, in an earlier interview. On the other hand,
"Intel is going to be able to produce all they can
sell."
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