Thursday October 21 10:21 PM ET
Intel To Launch Fastest Pentium III Monday
SAN FRANCISCO (Reuters) - Intel Corp (Nasdaq:INTC - news). plans to unveil its
fastest-ever Pentium III chips Monday, but analysts said the launch -- a key one for the chip
giant -- may be overshadowed by the lack of a much-anticipated chipset which will delay
products from some PC makers.
The Santa Clara, Calif.,-based chip maker said it will unveil 15 processors for desktop
computers, workstations, servers and notebook computers, including the much-anticipated chip
family, code-named Coppermine, with speeds above 700 megahertz. An Intel spokesman said
he could not provide any further details about the new products.
Coppermine is the name used internally at Intel for its next series of Pentium III chips for
desktops and mobile computers, designed using its new 0.18 micron process technology, which
creates transistors with finer linewidths.
Intel said the launch Monday will include the next Pentium III Xeon processors for the more
powerful server computers and workstations, code-named Cascades.
Analysts said the launch of this family of products is important for the world's largest chip
maker because the new processors, some expected to run at speeds of 700 megahertz and
higher, will let Intel again say it has the fastest PC chips.
Rival Advanced Micro Devices Inc. introduced a 700 megahertz version of its Athlon chip
family earlier this month, as it seeks to step up the battle with Intel in the area of more costly
computers used mostly by businesses.
The launch is also key for Intel because manufacturing these next members of its Pentium III
family using this new process technology will eventually lead to lower manufacturing costs for
these higher profit margin chips.
In Intel's most recent third quarter, its earnings were below Wall Street's expectations, in part
due to lower prices for its products and a slower-than-expected move to its new process
technology.
''It's extremely important for Intel because this is what is going to allow them to deploy a
lower-cost, higher-performance Pentium III and continue to fuel the high-end of the product
mix,'' said Mark Edelstone, an analyst with Morgan Stanley Dean Witter.
Analysts said power consumption in the chips is also lower, because the transistors are
smaller, so Intel will now have the first Pentium III chips for notebook computer users.
Previous versions of the Pentium III run too hot for laptop users.
But analysts said the launch is not expected to include Intel's 820 chipset, code-named
Camino, which was suddenly delayed last month, to the chagrin of some PC makers, like Dell
Computer Corp (Nasdaq:DELL - news). which had product launches tied to the processor and
the chipset.
The chipset, which accompanies the new Pentium III processors, is the first use of a
memory-enhancing technology developed by Rambus Inc (Nasdaq:RMBS - news)., based in
Mountain View, Calif. Certain systems were experiencing intermittent errors at extreme
temperatures and voltages and the companies said two weeks ago that they were working to
resolve the bugs.
''They have the problem solved and they are testing the fix,'' said Linley Gwennap, editorial
director of the Microprocessor Report. ''They have to make sure the fix doesn't cause another
problem...Everyone wants to stand up on the stage and say the chipset is ready. But they can't
commit to anything unless it is 100 percent validated.''
An Intel spokesman declined to comment on the chipset status, or if it will be introduced
Monday.
Meanwhile, some PC makers are in limbo and unable to ship their new products, until the 820
chipset is ready. Some are looking at alternatives, such as Intel's other chipset, the 810E, but it
does not have the same graphics performance.
''PC makers are in a holding pattern,'' said Nathan Brookwood, an analyst with Insight 64 in
Saratoga, Calif. ''Either they (Intel) sort out the 820/Rambus problems, or they will have an
awkward launch next week.''
Rambus couldn't be reached for comment.
A spokesman for Dell Computer in Round Rock, Texas said that Dell will be introducing
systems based on the new Pentium III chips, but he did not yet have any further details, such
as the timing of those products.
''We are going to have a server product next year that runs Coppermine,'' said a spokesman
for International Business Machines Corp (NYSE:IBM - news).
At least one PC maker, Nampa, Idaho-based Micron Electronics Inc (Nasdaq:MUEI - news).,
has decided to go with a competing chipset from VIA Technologies Inc. of Taiwan.
''Micron chose the new VIA technology because it found the chipset coupled with standard
133 megahertz synchronous dynamic random access (SDRAM) memory delivers virtually the
same or better performance as systems equipped with the substantially more costly RAMBUS
technology,'' Micron said in a statement.
''This has been a pretty painful transition for them (Intel) and for the industry,'' said Michael
Feibus, an analyst at Mercury Research. ''It's very hard to work with Rambus. The bus is
very fast and very alien to how everyone is used to working...Intel is feeling a lot of pain
there.''
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