Intel Zeroes In On Processors, Not Memory
(07/31/00, 11:35 a.m. ET) By Jack Robertson, Electronic Buyers' News
Intel isn't going to let Direct Rambus DRAM, or any memory interface, stand in the way of its primary goal of selling microprocessors.
That sentiment rang clear earlier this month when the company said it will develop a core-logic chipset that will allow OEMs to pair upcoming Pentium 4 CPUs with PC133 main SDRAM.
By its actions, Intel (stock: INTC) once again showed that when push comes to shove, satisfying customer demand for its products takes precedence over promoting Direct RDRAM as the PC industry's next standard memory.
"Intel's core business is selling processors," said a spokesman for the Santa Clara, Calif., company. "We'll sell Pentium 4 to support whatever memory our customers want. We don't want anything to impede the sale of these processors."
In what may be the beginning of an unfolding process, Intel last week confirmed it is developing a chipset for the Pentium 4 that will support single-data-rate PC133 SDRAM-and in a surprise admission, said it also "is investigating" whether to develop a double-data-rate (DDR) SDRAM chipset for the next-generation Pentium.
"At last, Intel's now totally agnostic on memory," said Nathan Brookwood, an analyst at InSight64, a Saratoga, Calif., research firm. "They started to let the market determine the type of memory for P6 [Pentium III and Celeron] processors. Last week, they decided to do the same for Pentium 4.
"It finally ends the 'holy war' on memory that Intel started by trying to force Direct Rambus on the PC industry," Brookwood said.
Until last week, Intel was adamant in its claim that the Pentium 4 would work exclusively with Direct Rambus. However, a price premium still double that of SDRAM, coupled with the uncertain availability of top-performing 800-MHz Direct RDRAM speed grades, has created too much risk for Intel to rely solely on Rambus (stock: RMBS) memory, analysts said.
What's more, rival Advanced Micro Devices (stock: AMD) is nipping at Intel's heels with plans early next year to begin volume shipments of its Athlon processors that will support DDR SDRAM in mainstream PCs.
Intel's move is reminiscent of last year's decision to include PC133 memory in the company's Pentium III road map, which to that point had included only Direct RDRAM. As it did a year ago, Intel last week insisted that it is maintaining the Rambus interface as the company's "primary memory solution for high-performance PCs."
Indeed, the first Pentium 4 processor the company will launch-a chip for high-end applications slated for release in the fourth quarter-is still tied exclusively to Direct RDRAM.
However, in mid-2001, when it rolls out its Pentium 4 follow-on for the mainstream desktop-PC market, analysts said Intel may need less costly PC133 or DDR memory for the CPU to be competitive.
"[Rambus availability] may be enough to support the initial niche market of high-performance Pentium 4s, where customers may be more willing to pay premium memory prices," said Bob Merritt, an analyst at Semico Research, Redwood City, Calif. "But unless Direct Rambus prices come down sharply in the fourth quarter or early next year, Intel may be unable to transition Pentium 4 as quickly as it wants to the mainstream PC market against AMD's Athlon."
AMD's Athlon/DDR SDRAM platform is now at least six months ahead of the Pentium 4 launch, which only adds to the pressure Intel is under.
In the near term, the company plans to wring more performance from the Pentium III by shrinking the die to 0.13-micron line widths and coupling the device with DDR chipsets from independent suppliers, according to industry sources.
Given Intel's softened stance relative to SDRAM, the question now nagging observers is to what extent the company will support the technology through its Pentium 4 program.
Brookwood noted that there is a performance mismatch between PC133 and the Pentium 4 that could prove a bottleneck for Intel's new processor. Specifically, a PC133-enabled chipset has a data rate of 1 Gbyte/s, which leaves the 3.2-Gbyte/s dual-channel Pentium 4 starved for data.
"A PC133 chipset simply doesn't make much sense for Pentium 4," Brookwood said.
Other questions have arisen as to Intel's willingness to develop its own DDR-enabled chipset, an act that would violate a clause in its license with Rambus, Mountain View, Calif., that prohibits Intel from endorsing any high-speed memory interface other than Direct RDRAM.
Also at issue is whether Intel will license its Pentium 4 bus architecture to allow third-party chipset vendors to supply their own logic controllers-particularly DDR chipsets.
Under the latter scenario, it isn't clear if Intel would go as far as to sanction outside vendors or simply look the other way.
However, sources said that Intel's sudden interest in SDRAM may help explain last week's disclosure by Via Technologies, Taipei, Taiwan, that it plans to field DDR-enabled chipsets for the Pentium 4 with or without an Intel license.
At the time, Via was fresh from settling a lawsuit filed by Intel alleging illegal use of the Intel P6 bus license to build chipsets for the Pentium III.
Observers noted that Via's cavalier attitude in publicly placing Pentium 4 support on its 2001 road map may stem from a belief that Intel will not be as aggressive in prosecuting the company for the unauthorized use of its Pentium 4 technology. |
