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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (86534)	8/3/1999 10:45:00 AM
From: greenspirit	Read Replies (2) \| Respond to of 186894

TigerPaw and all, Article... The race to sell MHz... August 3, 1999 ELECTRONIC ENGINEERING TIMES : The PC market is obsessed with clock speed. With the realities of true performance evaluation apparently too complex for most consumers to handle, the PC-buying masses have focused on clock speed as a simple figure of merit. Simply put, clock speed sells. This phenomenon has several implications for microprocessor makers. Its most immediate impact is the high prices that can be charged for the top speeds, making them much more profitable to sell. The fastest clock speed often will sell for $200 or so more than the next speed down-despite a typical clock-speed difference of 10 percent and a delivered performance difference of perhaps 5 percent. These economics have driven AMD to push hard toward higher clock speeds with its K6-2 family. Although the K6, which now tops out at 475 MHz, remains behind Intel's top speed of 550 MHz for Pentium III, it beats Intel's top Celeron speed of 466 MHz. The cost to AMD of achieving this has been great, however; the repeated tweaking of the design has caused the company's yield hiccups. With Athlon (once the K7), AMD hopes to turn the tables. The consumers' focus on clock speed has produced a similar focus in chip designs: Athlon has been designed for clock speed. Its chief architect, Dirk Meyer, led the design of two Alpha chips-both clock-speed champs. AMD has announced Athlon versions at 500, 550 and 600 MHz, making its top speed bin one above Intel's-the first time AMD has achieved a lead. By the time systems begin shipping with 600-MHz Athlon processors, however, Intel is likely to be shipping a 600-MHz Pentium III, putting the companies at parity. AMD, which seeks to change its image from economy supplier to performance leader, no doubt will try a 650-MHz part when Intel begins shipping at 600. By offering the part only to select customers and at premium prices, AMD could ship a super-premium speed grade even if yields at that speed are modest. Intel had been due to ship its 0.18-micron version of Coppermine early in the third quarter, and it seemed reasonable to expect that the new process would enable Intel to leap ahead again in clock speed. Intel has now disclosed, however, that Coppermine shipments have been delayed a couple of months, giving AMD some breathing room. For once, it seems possible that AMD will deliver while Intel stumbles. AMD must now move smoothly to 0.18-micron technology itself, and the second phase of the race will begin. MICHAEL SLATER (MICHAEL@MSLATER.COM) IS PRINCIPAL ANALYST AT CAHNERS MICRODESIGN RESOURCES (WWW.MDRONLINE.COM).