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Politics : Formerly About Advanced Micro Devices
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To: Paul Engel who wrote (32828)5/20/1998 7:49:00 PM
From: Maverick  Read Replies (1) of 1571438
 
AMD to introduce K-7s & K6-3, part II
In the second half of next year, the company plans to introduce the K6-3, which will
have an integrated Level 2 cache. AMD is positioning it squarely against Intel's
forthcoming Katmai processors.

Katmai is the code name for Intel's line of processors with the next generation of
multimedia extensions.

Finally, there is AMD's server-oriented K7, about which the company has provided
little detail except that it will compete with Intel's Willamette processor. The latter is
a 32-bit CPU that is scheduled to be delivered around the same time as Merced,
Intel's first 64-bit processor.

AMD's Krelle also said the company is designing processors for portables.

These are bold moves for AMD, which has survived with less than 10 percent market
share and low ASPs (average selling prices) for years. However, history has shown
that Intel does not suffer "turf invasion" lightly and can undercut competitors' prices in
a heartbeat. That's precisely what drove Cyrix out of the corporate market.

But AMD is confident that it can execute and grow its product line to improve the
bottom line.

"We will expand product lineup to higher-margin products [portables and servers] to
grow ASPs,'' Krelle said.

On the opposite end of the spectrum is tiny Centaur, the processor design subsidiary of
Integrated Device Technology Inc.

Centaur President Glenn Henry said the company is focused exclusively on delivering
products for the sub-$1,000 market.

It is that focus which Henry said drove the company to design next-generation
processors without a system bus.

"System buses add cost and create a bottleneck,'' Henry said. "So rather than get
involved in a bus argument, we will remove it.''
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