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To: Dan3 who wrote (28320)	9/1/1999 6:39:00 AM
From: Estephen	Read Replies (1) \| Respond to of 93625

from WSJ.. September 1, 1999 Intel Demonstrates Prototype Of New Merced Microprocessor By DEAN TAKAHASHI Staff Reporter of THE WALL STREET JOURNAL PALM SPRINGS, Calif -- Intel Corp. demonstrated the first working prototype of its next-generation microprocessor at a technical conference here, seeking to reassure the industry about its chip-design capability. Craig Barrett, Intel's chief executive officer, said in a keynote address Tuesday that the long-awaited chip, codenamed Merced, is on schedule for mass production in the middle of next year. He didn't quantify its processing speed but demonstrated that the chip could handle complex three-dimensional animations. Merced is Intel's first chip that processes 64 bits of data at a time, rather than 32 bits, which should greatly boost its power when using specially designed software. Significantly, the prototype was shown running an early 64-bit version of Microsoft Corp.'s Windows 2000 operating system, another long-delayed product expected to be crucial to both companies' success in high-end computers. The Merced chip also ran a 64-bit version of the Linux operating system, the free program that is growing in popularity. Intel's slow progress in finishing the long-delayed Merced has been a source of frustration in the personal-computer industry. "I was impressed that in the course of two weeks they were able to get that software up and running on a sample chip," said Richard Doherty, an analyst at Envisioning Group in Seaford, N.Y. "It shows that they haven't slipped further." Intel made some other announcements that will have broad impact in the PC industry. For instance, Mr. Barrett said that Intel and computer makers resolved a dispute over the future technical specifications for moving data within a computer. The dispute over the next-generation input-output technology in the computer, commonly known as a bus, ends a fractious debate that pitted Intel and ally Dell Computer Corp. against three companies that came up with a rival technology, Compaq Computer Corp., Hewlett-Packard Co. and International Business Machines Corp. Michael Slater, an analyst at Cahners Micro Design Resources, said that the parties appeared to end the conflict when Intel relented on a requirement that all parties involved give up the rights to royalties on patents related to the technology. The IBM group felt that it had valuable patents, and all parties have now agreed to license each other the technologies involved on a "fair and equitable basis," meaning that companies with key patents such as IBM can collect royalties from those that don't. "Cooler heads prevailed and, while we have a lot of work to do, we should see the technology arrive in 2001," Mr. Barrett said. Intel, Samsung Semiconductor and other companies also agreed to work together to lower the cost of memory chip technology that Rambus Inc. licenses for use in powerful computers. Computer makers have voiced concerns about prices associated with adopting the Rambus approach. Despite the issues, Mr. Barrett said Rambus remains Intel's long-term choice to improve memory speed. Lastly, Mr. Barrett said that Intel in October would launch its newest microprocessors, faster versions of its Pentium III chips running at 600 megahertz and 667 megahertz speeds. By the end of the year, he said, Intel will offer a chip running at over 700 megahertz. On stage, Mr. Barrett demonstrated a working 800-megahertz Pentium III but declined to say when it would be available. Michael Feibus, an analyst at Mercury Research, which tracks the chip industry, said he expects Intel to temporarily take back the speed crown from Advanced Micro Devices Inc. as it launches the new chips. But he said he believes that buyers will have to wait until after Christmas for the 800-megahertz Pentium III.