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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: milo_morai who wrote (91775)	2/6/2000 3:46:00 AM
From: Process Boy	Read Replies (3) \| Respond to of 1577108

milo and Thread - Article. Good news for AMD. No link available. Note what the reason continues to be. Note also it's not just Coppermines. Intel chip shortage helps AMD Marcia Savage Feb. 7, 2000 Computer Reseller News CRS Page 7 Copyright 2000 CMP Publications Inc. Santa Clara, Calif. - Tight supplies of Intel Corp. chips are hitting the channel, forcing systems builders to push back orders and leading some to rely more on Advanced Micro Devices Inc. Distributors and VARs last week reported short supplies of Intel's Pentium III chips. One white-box distributor said the processors are "definitely on allocation," while another VAR said popular speed grades, such as 450MHz, are unavailable. "We are providing longer estimates on system builds for all of our customers," said Todd Barrett, network sales manager at CPU Sales and Service Inc., Waltham, Mass. The channel is feeling the supply strain cited last month by Gateway Inc., San Diego, and Dell Computer Corp., Round Rock, Texas. Both OEMs blamed a shortage of Intel chips as contributing to weak fourth-quarter figures. "Once OEMs see tight supply, clearly that has a trickle-down effect to the channel," said Michael Schwab, director of purchasing at D&H Distributing Co., Harrisburg, Pa. The shortage is making it hard to sell motherboards that require Pentium IIIs, said John Howland, owner of Specialty Tech, Lake Forest, Calif. However, the lack of Intel chips has pushed up sales of AMD's Athlon processor, which is in good supply, he said. Intel executives acknowledged the company's low inventories last month in the vendor's fourth-quarter earnings report and said it is working hard to build up supply. "We are exceeding our planned outputs; we're ahead of our conversion rates in the new process technology. The market was forecast to grow at 15 percent. It grew over 20 percent," said Pat Gelsinger, vice president and general manager of Intel's Desktop Products Group. "We and the DRAM guys and the graphics guys are racing to catch up with those supply issues," Gelsinger said. "We expect overall we'll be ahead of demand [next quarter]." Intel is building up capacity with the purchase of a manufacturing plant in Colorado from Rockwell International Corp., Gelsinger said. Intel announced the purchase last week, just one week after unveiling plans to build a $2 billion facility in Arizona. The new factory sounds like good news down the road, but Intel is leaving customers in the lurch now, said Jason Simonds, principal owner at DCC Inc., Damariscotta, Maine. The chip shortage has forced the company to turn to the gray market for supplies and also rely more heavily on AMD. "We started phasing Intel out and using AMD as much as possible," he said. February 07, 2000