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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Rob S. who wrote (4949)	11/26/1997 1:58:00 PM
From: LONE EAGLE	Read Replies (1) \| Respond to of 11555

Fresh off the Press............................... Chipmakers unite against Intel, AMD, Cyrix and Centaur join to battle Intel, n Chipmakers working on agreement to create microprocessing standard by OMAR L. GALLAGA Nov 26 1997 12:05PM CST, Austin American-Statesman Three rivals of chipmaking giant Intel Corp. are negotiating a new microprocessor standard that could rival Intel's technology. AMD, Cyrix and Austin's Centaur Technologies said they are working out an agreement to use a single set of 3D graphics instructions for their next generation of chips. The instruction set adds expanded graphic capabilities to chips like the AMD K6, making the processors better able to quickly crunch complex graphics and sound in computers. Industry experts said an agreement would make it easier for software companies to create titles and operating systems. For instance, Microsoft would only have to program its Windows software for two kinds of processors, Intel's and the rival chipset, instead of customizing software for four different processor standards. The extra programming would be especially evident in games and design applications with complex graphics. In the computer game market today, for instance, some games are programmed to run best on Intel's MMX-enhanced processors. A chip standard could force software makers to choose one standard over another or, more likely, provide software support in programs for both Intel chips and the alternate standard. At the San Jose Microprocessor Forum in October, each of the companies announced plans for enhanced 3D processors for release next year. Since then, the companies have entered negotiations to set a single 3D standard in their fight against Intel's hold on the processor market. Intel, the largest chipmaker in the world, makes about 85 percent of the chips that work as the brains of PCs. AMD, the largest of the three rival companies, makes its K6 line of processors in Austin. The company announced over the past two weeks that computer game makers including DreamWorks Interactive and Digital Anvil would be creating games to work best on next year's AMD-3D K6 line of chips. "The discussions look promising," David Frink, a spokesman for AMD, said of the alliance talks. "We need to have a common standard. After the microprocessor forum, the three companies have seen the wisdom of entering into something that might be mutually beneficial." Centaur, a small subsidiary of Integrated Device Technology, said it would be willing to license AMD's 3D technology and use it as its own. Glenn Henry, Centaur's chief executive, said the companies took the initiative to create their own 3D technology rather than wait on Intel's next generation of MMX processors. "All three of us have roughly the same story," Henry said. "It makes sense for the three of us to work together. "There's strength in numbers when you're dealing with something that has the marketing power of Intel," Henry said. Intel's market power is borne out in its revenues. It had $20.8 billion sales in its past fiscal year. AMD had $1.95 billion; Cyrix, $183 million; and IDT, $537 million. Analysts said the timing for the deal is right and may even catch Intel sleeping at the wheel. Linley Gwennap, editor of Microprocessor Report, said a 3D processor standard could rival anything Intel will release for at least the next year. "AMD and these other companies have actually gotten ahead in advancing their processor specifically for 3D," Gwennap said. "Intel is planning on doing something similar, but probably not for another year. It's an opportunity for AMD and the other to really set the pace in the PC processor industry." The three smaller chip makers announced 3D processors for mid-1998. If negotiations go smoothly, the companies could have a jump time of at least six months over Intel in getting the 3D chips to the marketplace. Currently, many PCs rely on separate hardware acceleration devices to speed up performance in graphic-heavy games and other applications. The new 3D chips will process geometry and lighting functions three to five times faster by adding a set of graphic instructions to the surface of the chips. (Copyright 1997)

To: Rob S. who wrote (4949)	11/27/1997 1:16:00 AM
From: Gordon Quickstad	Read Replies (2) \| Respond to of 11555

Thanks for your analyses of the market, Rob. So far, Intel has expanded to a large extent by selling to the same market again and again: 8088, 80286, 80386, 80486, Pentium, Pentium II (and don't forget those SX's). Now, low end 486's are going on the scrap heap and I think a lot of corporate and home buyers are getting a little tired of rebuying their computers every couple of years. Perhaps a slow down in purchases of new MPUs is in order as has happened to HP's printer sales. HP has tried hard to not offer too much improvement too fast and put themselves out of business, but people seem to stick with their 4PPM deskjet because it gets the job done instead of buying each new incremental improvement. I would guess that when we hit the Pentium 133 class of processors that the same thing is potentially happening in processors - the 133 gets the job done - and why upgrade when there is no compelling reason. Now, more and more, convenience is becoming important for productivity rather than just raw speed. People might want one or two dedicated applications on a processor instead of having one extremely fast processor with all applications on it. This might be using one computer for handling a small business and another for internet use and perhaps another for kids games and homework. The same division of tasks would also be convenient at work. This is where capable processors like the C6 can add the convenience desired without the high cost of just raw compute power. The C6 is a sensible solution for offering this convenience as well as an offering for the uncomputerized masses.