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

To: Phaedrus who wrote (8439)	5/20/1998 9:36:00 AM
From: srvhap	Respond to of 11555

Very Cool! A service of Semiconductor Business News, CMP Media Inc. Story updated 8:15 p.m. EDT/5:15 p.m. PDT, 5/19/98 Centaur to shoot low in pricing WinChip2 chips for cheap PCs By Will Wade SAN JOSE--Glenn Henry, president of Centaur Technology, has a simple strategy to promote his company's IDT WinChip2 microprocessor--make the x86-compatible MPU cheaper than any other product available for low-end PC systems. "I guarantee it will be priced lower than anybody else's chip," said Henry here today as he introduced the company's newest device during the 1998 PCTech Forum. But Henry won't discuss specific pricing during the roll out of the x86-compatible processor. He says he's going to wait for the next microprocessor announcement from Advanced Micro Devices Inc., which is expected to disclose pricing on K6 microprocessor later this month. That's when Henry plans to make sure the IDT WinChip2 is priced lower than AMD's K6 devices. Centaur, a wholly-owned subsidiary of Integrated Device Technology Inc., introduced its first IDT WinChip device at the PCTech Forum conference last year. Henry recalls that most people expected the company to go broke. Instead, it seems like Centaur correctly anticipated the demand for inexpensive PCs, and with a year to fine tune the product, Henry expects to see the IDT WinChip2 play a bigger role in systems for both the home and business market. About 200,000 original IDT WinChip processor have been shipped to date, said Henry, who admits that the total is still relatively insignificant compared to the total market size. He also admits that the chip had a few flaws, notably the lack of a floating-point unit and MMX technology. But Henry said the latest version corrects both of those issues. The company is pursuing a roadmap that aims to improve the chip's features and performance while still maintaining a strong price position. By the end of this year, Henry expects to be producing about a million chips per month. He added that the low-cost IDT WinChip series will continue to help expand the market for low-cost PCs. The original IDT WinChip is available for about $45 in a 200-MHz version, and he said that his firms products are aimed at systems in the $600 to $1,000 range. "Intel will never make a $150 processor in my lifetime, so they are not even a direct competitor," he added. "We'll make our money by staying in the low end of the market." Centaur plans to add a larger cache to its next version, the IDT WinChip2+, and the subsequent IDT WinChip2+NB will also integrate the northbridge components. The IDT WinChip3 will feature a new core and speeds up to 600 MHz. All of these devices are scheduled to be introduced by mid-1999.

To: Phaedrus who wrote (8439)	5/20/1998 11:51:00 AM
From: Rob S.	Read Replies (2) \| Respond to of 11555

This fits with what we know about mfg. costs - IDTI can produce the parts for around $25 if they get the yields and production up. At an ASP of $50-$70 for the new parts (IDTI is having to sell out the old 200 Mhz stuff cheap - $45), Intel, AMD and NSM are left out of the race from a cost standpoint. This cost advantage will be particularly important to overseas markets. For portables IDTI should have a clear advantage. The problem remains building parts in quantity. All the brilliant plans in the world don't amount to much if all you've got to show over the past year is a tinsy weenie 200K parts manufactured. Go IDTI (and IBM) fabs, get your hands out of your pockets (quit playing around) and build these da*n things!

To: Phaedrus who wrote (8439)	5/20/1998 11:58:00 AM
From: Frank Povoski	Read Replies (2) \| Respond to of 11555

This guy is totally f*cked up About 200,000 original IDT WinChip processor have been shipped to date, said Henry, who admits that the total is still relatively insignificant compared to the total market size. He also admits that the chip had a few flaws, notably the lack of a floating-point unit and MMX technology. But Henry said the latest version corrects both of those issues. No floating-point unit or MMX?????????????. What is he smoking?