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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 (9100)	7/6/1998 11:42:00 PM
From: Medisco	Respond to of 11555

News Alert from AP Online via Quote.com Topic: (NASDAQ:INTC) Intel Corp, (NASDAQ:IDTI) Integrated Device Tech, (NYSE:AMD) Advanced Micro Devices Inc, (NYSE:IBM) Intl Business Machines Corp, (NASDAQ:CMPX) CMP Media Inc Cl A, Quote.com News Item #6985341 Headline: Smaller Cos. Increase Chip Sales ====================================================================== HILLSBORO, Ore. (AP) - The $21 billion microprocessor market is dominated by Intel Corp., but smaller manufacturers are starting to get a foothold. Last year, Integrated Device Technology Inc., introduced WinChip, a low-cost alternative to Intel's Pentium II. Sales of WinChips, which are made at IDT's plant in Hillsboro, are too small to make a measurable dent in Intel's 87 percent market share, but that is expected to change. WinChip, along with other alternative chips from Cyrix Corp. and Advanced Micro Devices Inc., are forecast to account for 25 percent of the market by 2002, according to Dataquest, a market research company based in San Jose, Calif. In March, IDT struck a manufacturing partnership with International Business Machines Corp. that will enable IDT to increase the volume of chips available for sale. The partnership should allow IDT to make smaller versions of the WinChip that work faster and are less expensive to produce. ''WinChip is doing better than I think even IDT expected. I consider them a front-runner in the market for low-cost PCs,'' said Ravi Krishnan, a microprocessor analyst with In-Stat, a market research firm in Arizona. IDT set up its Centaur Technology Inc. subsidiary in Austin, Texas, to develop a low-cost microprocessor - the brains of a personal computer - to diversify its existing line of specialized chips, which are suffering from intense price competition. The Santa Clara, Calif.-based company's goal was to come up with a chip that was small so it would be inexpensive to manufacture. With a small die size, IDT is able to get more chips out of every 8-inch silicon wafer that comes off its production line. And it wanted to make a chip that was capable of running popular software programs at speeds comparable to its competition. WinChip's designers accomplished both by eliminating features that cause its Intel-made counterpart larger and twice as expensive. For example, it took out a feature that enables two Pentium processors to work together as one, technology that the average business and home PC user never takes advantage of. IDT's marketing is targeted at the 35,000 independent computer dealers that assemble and sell no-name PCs. Combined, these dealers sold about 6.37 million PCs last year, representing $7.6 billion in sales, said T.C. Doyle, a market researcher with Channel Information Services, a unit of CMP Media Inc. in Park City, Utah.