To: Elmer who wrote (142057 ) 8/20/2001 7:35:52 PM From: Elmer Respond to of 186894 Yet another schedule pullin by Intel: By Terho Uimonen Staff Reporter TAIPEI Intel Corp. is pushing forward to late November deliveries to Taiwan personalcomputer and motherboard makers of a chip set designed to support its highend microprocessors, people familiar with the company's plans said. The chip set will allow Intel's Pentium 4 processors to be paired with cheaper highspeed memory chips than those supported by its current offering. Intel had said it was readying such a chip set for introduction early next year. Chip sets are key PC components that control the flow of data between the processor, the brains of a computer, and other parts of the system. Analysts said the schedule change reflects the heat Intel is feeling from rival Via Technologies Inc., the world's secondlargest chipset supplier behind Intel. "By the end of November everybody (will) have a whole bunch of (the Intel) chip sets," said Charles Kau, executive vice president of strategic marketing and global sales at Nanya Technology Corp., a Taiwanbased memorychip maker. Mr. Kau said he learned of the change of plan from visiting Intel officials. "We can't comment on any unannounced products," said Stanley Huang, Intel's director of marketing and business management in the AsianPacific region, when asked about the company's plans. Still, Mr. Huang confirmed that Intel is on track to unveil in September the first version of its longawaited 845 chip set that supports today's standard dynamic random access memory, or DRAM. But PCs built around the first version of the 845 chip set and the Pentium 4 are likely to offer disappointing performance roughly equal to machines powered by older Pentium III processors, according to analysts. With Via Technologies already shipping a chip set supporting the speedier memory chips, Intel is now late with its offerings and appears to be counterattacking with legal threats and promises to pull in the doubledatarate version of the 845, Dan Heyler, head of AsianPacific semiconductor research at Merrill Lynch, wrote in a research note published Monday. Intel's decision also signals that a highspeed memorychip technology based on proprietary technology developed by Rambus Inc. is losing momentum. The doubledatarate chips supported by Via Technologies and most of the world's memorychip makers are likely to become the mainstream in PCs by next year, analysts said. Yet, Intel may already have succeeded in slowing the acceptance of the Via Technologies chip set. Intel officials, including Chief Executive Craig Barrett, in recent weeks have issued a string of thinly veiled threats of legal action against the Taiwan company, alleging that it may have infringed upon Intel's intellectual property. As a result, officials at Taiwan's major motherboard makers said they won't introduce products designed around the Via Technologies offering before the legal uncertainty is resolved. Via Technologies officials are angered by Intel's moves. "We strongly disagree with the scare tactics Intel is adopting," said Richard Brown, the company's director of marketing, referring to the threats of legal action. (END) DOW JONES NEWS 082001 05:26 PM