To: Goutam who wrote (80080 ) 11/16/1999 4:01:00 PM From: Charles R Read Replies (2) | Respond to of 1570918
zdnet.com Intel: Pentium III shortage to be fixed in early 2000 By Anne Knowles, PC Week Online November 16, 1999 12:47 PM ET LAS VEGAS -- The tight supply of Pentium III processors won't loosen up until early next year, according to Intel Corp. "We are meeting our backlog," said Pat Gelsinger, vice president and general manager of the Santa Clara, Calif., company's Desktop Products Group. "[Supply] will be tight through the first quarter, and by the second quarter we should be able to start meeting [our customers'] upside requests." PC makers have been reporting constraints in the supply of Pentium III, particularly at the top end of the recently announced processors. Those chips, known collectively by the code name Coppermine, run as high as 733MHz. Pentium IIIs running at 600MHz and above are also the first processors Intel has manufactured using the .18 micron process. Three factors at the root Gelsinger blames three factors for the shortage of chips. He said everyone, including Intel and market forecasters, underestimated PC demand for the end of the year. Second, he said the recent earthquake in Taiwan threw a wrench into the supply chain. Finally, problems with product flow are not unusual in the midst of a processor conversion, in this case the switch from .25 micron to .18 micron. Gelsinger said Intel was not having trouble producing the fastest performing chips, despite OEMs reporting trouble getting their hands on the top end of the line specifically. In fact, Gelsinger said, Intel is expediting delivery of the 800MHz Pentium III from the second quarter of 2000, when it was originally scheduled to ship, to the first quarter. AMD, 820 chip set Meanwhile, Intel rival Advanced Micro Devices Inc. said last week it was accelerating delivery of new Athlon chips. The Sunnyvale, Calif., company said it will ship the 750MHz Athon before the end of the year, rather than in the first quarter of 2000 as originally planned. AMD said it will now release the 800MHz Athlon in the first quarter. Intel on Monday also announced availability of its 820 chip set. The chip set, which is the first to use Rambus Direct RAM, had been delayed twice due to problems with the new memory technology. As Intel had said earlier, the solution to the RDRAM problem turned out to be a redesign of PCs to incorporate two Rambus inline memory modules rather than three. "Standing wave, or noise, in the channel turned out to be remarkably worse in three-RIMM designs," said Gelsinger. PC makers, which were waiting for the faster-performing 820, promptly announced new PCs using the chip set.