More K6-3D news (of delay possibility)
zdnet.com
AMD running up against
deadline for 'K6-3D' chip
By Robert Lemos, ZDNN
March 12, 1998 7:19 PM PST
Time is running out on PC chip maker
Advanced Micro Devices Inc.
Observers say AMD (AMD) needs to release a
zippy new version of its K6 processor before
Intel Corp.'s Pentium II becomes widely
established, or risk losing any chance of carving
out a portion of the PC market.
The AMD K6-3D chip will be shaving its deadline
close, according to PCWeek.
In early January, AMD announced that the K6
processor would be put in computers from IBM
and Compaq.
"The overriding issue for AMD is whether they
can stop the industry tide towards the (Intel
Pentium II architecture)," said Mike Feibus,
principal analyst for semiconductor watcher
Mercury Research Inc. "
Yet ZDNN sister publication PCWeek Online
reported on Wednesday that AMD will delay the
rollout of its K6-3D processor until the end of
June. The chip was expected to appear at the
CeBIT trade show in Hanover, Germany, next
week.
Missing CeBIT is the latest in a string of woes
AMD has suffered with K6. Missing its June ship
date would cast K6's market presence in
serious doubt, analysts say.
Late last year, AMD made public its problems
with producing large volumes of the K6, its
competitor to Intel's Pentium and Pentium II
processors.
Too many problems, too little time
While AMD's biggest customers haven't
complained of a short supply, they aren't rolling
in K6s, either.
"We are not supply-constrained and we don't
have an excess of inventory," said Andrew
Haden, a spokesman for IBM.
Unlike for other customers, the chips for IBM
and Compaq are not made in a factory, but in
clean rooms normally used to create samples
and prototypes, said Dwayne Cox, an AMD
spokesman.
Considering the real business need for AMD to
flood the market with K6 processors, this sort of
just-in-time manufacturing may be too late.
AMD's solution: Convert its fabs, where the
chips are made, to make a smaller version. This
means three times more chips per silicon wafer
-- with less errors, they hope.
Yet shrinking the chip is no mean feat. "This is a
tough thing to pull off," admitted AMD's Cox.
Mercury's Feibus says the latest delay reflects
badly on AMD's ability to keep a steady stream
of chips rolling out the door. "I am not convinced
that they can do it, frankly," he said.
Compaq and IBM paying off
Still, AMD's sleight-of-hand in keeping IBM and
Compaq happy is paying off.
According to market research firm PC Data, two
Compaq Presarios and an IBM Aptiva based on
the K6 took top honors in January retail sales.
The three models make up 21 percent of the
retail sales in the market, said the Reston, Va.,
firm -- a market that mainly consists of PC
priced under $1,300.
Within that price range, AMD garners points
over Intel in price-performance, giving the
company points with the big-league players.
But one analyst likened it to holding a tiger by
the tail.
"It's hard to say that it's AMD beating everyone
up," said Steve Baker, senior hardware analyst
for PC Data. "They are just partnering with the
right people, and hanging on for the ride."
3-D is the key
Still, if the company can make the transition to
smaller chips and get its AMD K6-3D processor
to market by this summer, it has a chance, say
analysts.
Already, AMD and other processors are eroding
Intel's share of the retail market. In January,
about 36 percent of the PCs sold were non-Intel
processors, according to PC Data.
Better 3-D game capabilities, for one, could
grab a bigger piece of the consumer pie. That's
where AMD's K6-3D comes in.
Another ace in the hole is Mr. Gates. Microsoft
intends to support the special 3-D instructions in
the new processor in its 3-D game interface,
Direct3D 6.0, due out in the second half of this
year.
"The DirectX support is key," said Mercury's
Feibus. "The whole gaming industry is starting
to support it (as a common platform)."
Yet it's time to stop playing games and solve the
problems. Otherwise, it's the Deep-(K)6 for
AMD. |
