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June 28, 1999, Issue: 848
Section: News
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OEMs air laundry list of challenges for Intel -- Cite performance issues, delays
Kelley Damore & Marcia Savage
New York - Performance concerns, technical difficulties and product delays from Intel Corp. raised the ire of hardware makers here at PC Expo.
The OEMs' list of complaints at PC Expo last week include the two-month delay of Intel's Coppermine, an enhanced version of the Pentium III; lackluster performance from Merced samples; and a mixed bag of mobile product concerns.
Within the past few weeks, some hardware OEMs were disappointed with early Merced samples, said sources.
"We need to offer a real compelling reason for Unix customers to switch to Merced, and the performance is not there yet," said one hardware executive.
An Intel spokesman said the Santa Clara, Calif.-based company has released only simulators of the Merced chip. One hardware OEM said Intel described the chips as pre-alpha after the disappointing feedback.
The performance of Merced when it ships in mid-2000 will be competitive or better than alternatives available in the industry, said the Intel spokesman.
Some OEMs cited other problems with Intel's high-end lineup, including delays for its Profusion chipset as well as the integration of the new Rambus memory architecture.
The Profusion chipset, a technology that allows eight-way processing for servers, has been delayed for almost a year. The technology was acquired when Intel bought Corollary Inc. Intel said silicon is expected in the third quarter.
Meanwhile, Hewlett-Packard Co., Compaq Computer Corp. and others unveiled performance benchmarks and spoke about general eight-way server specifications at the show. But servers with the Profusion technology could be pushed back to September, OEMs said.
Some OEMs also are still chafing over Intel's delay in implementing Rambus high-speed memory technology into its chipsets (CRN, March 1). OEMs question the price/performance of the new technology, which slipped on Intel's schedule to the third quarter from midyear.
And some notebook hardware executives are not pleased with the latest Intel mobile chips. The mobile 400MHz Pentium II, unveiled earlier this month, is produced on both the 0.25 micron process and the new 0.18 micron process. Chips made on 0.18 micron are faster, consume less power for increased battery life and allow smaller form factors, said Intel.
"OEMs have to choose between the two offerings. How do you forecast? It is very difficult," said one executive from a top PC company. "It is also difficult to explain to the customer. The clock speeds are the same, but the manufacturing process is different."
Hardware makers also said the 0.18 micron chips are more expensive. An Intel spokesman said the price will decrease as Intel transitions fully to the new manufacturing process.
Intel executives said earlier this month that the desktop version of Coppermine, an enhanced Pentium III produced on 0.18 micron, will be delayed to November from late September. The mobile version is still on schedule but at 500MHz, not 600MHz as planned.
The chipset intended to accompany Coppermine, known as Camino or 820, will be released in September, forcing OEMs to wait until the end of the year to get optimal benefits of the processor and chipset. Intel said the 820 chipset will be fully supported by the Pentium III processor produced on 0.25 micron. But the Pentium III on the 0.25 micron will not offer features such as integrated cache.
Aside from product delays and manufacturing concerns, Intel is grappling with heat and power issues that have plagued its mobile chips for some time, some OEMs said. "We had some headroom, but as the speeds go up we have less flexibility," said one notebook executive.
While the changes in Intel's road map have OEMs up in arms, some VARs said the delays are not impacting their businesses.
"Most VARs and OEMs, which we are both, build into their road maps the reality that you're going to miss ship dates or deadlines," said Chuck Fried, president of The Tech Shop Inc., Buffalo, N.Y.
"We invariably build into our plans, especially when you're talking about technology advancements like Coppermine, that there's going to be challenges and roadblocks to overcome," he said.
While delays plague Intel, rival Advanced Micro Devices Inc. last week shipped its next-generation processor, Athlon, to computer makers. AMD, which expects a huge loss in its second quarter, is hoping the new chip will help it return to profitability.
Difficulties for Intel
- Year-plus delay of Profusion eight-way chipset.
- Integration of Rambus memory architecture delayed until 3Q.
- Coppermine chip stalled until November.
- Lackluster performance of Merced 'simulators.'
- Mobile processors reaching thermal limits.
Copyright ® 1999 CMP Media Inc.
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