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To: Samuel Lee who wrote (18777)	7/27/1998 4:19:00 PM
From: BillyG	Read Replies (1) \| Respond to of 25960

More on Intel and 0.18 and 0.13 micron........... From Page One of Electronic News: July 27, 1998 Issue Intel Discloses Roadmap To Future MPUs Santa Clara, Calif.--Intel is busy these days relaying an MPU roadmap to its OEM customers that includes two new additions, dealing with media discussion of another flaw in the Pentium II Xeon microprocessor, and releasing its quarterly processor pricing schedule which includes dramatic reductions in the earliest versions of the Celeron processor which came under fire for being under-powered. Intel corporate spokesman Howard High said, "We confirmed that we went out with new roadmap data, an update to computer makers. In it, for the first time, a couple of things occurred. Celeron will integrate L2 cache. Our Mendocino version (Celeron with L2 cache) (EN, April 13) was targeted for the fourth quarter and we have moved that up to the third quarter. That way it will be available for customers for the back-to-school and holiday selling season in 300MHz and 333MHz versions with L2. "We have also confirmed we will have a 366MHz Celeron with L2 cache in the first half of 1999. Mr. High also said that Intel now confirms that it will begin using 0.18-micron process technology late next year. "One other part of the roadmap that is new is that, in the second half of 1999, you will start seeing product creep onto the roadmap that is using 0.18-micron technology. "We released two new code names for processors that will ship on the new process. For the desktop and mobile markets we will ship a processor with the code-name Coppermine. It obviously follows Katmai and includes Katmai instructions." Katmai is Intel's planned next-generation multimedia instruction set--70 instructions in all--that will be overlayed on MMX. There will also be a family of Pentium II processors, also code-named Katmai, that will use the instructions. "The Coppermine equivalent for the workstation space is code-named Cascade. That processor will be in production on 0.18-micron in the second quarter of 1999 and these will show up on the roadmap in the second half of 1999," Mr. High said. He noted that the name Coppermine does not refer to the use of copper process technology in the MPUs. Intel, in a separate interview last week said it does not expect to use copper until it hits the 0.13-micron process level (see related story, page 1). Separately, the company said shipment of some new computers using the latest version of its Pentium II MPU will be briefly delayed as it puts into place a fix for a flaw in its Xeon chip. The problem with the chip was on the original list of errata that accompanied the introduction of the MPU. Every new chip is accompanied by an errata list at its introduction. However, Intel recently told systems makers that it has found a fix for the flaw. The erratum causes some machines using Xeon's error correcting code to stop and restart, and correcting the flaw will cause a delay of about 10 days in shipment of new computer systems. The flaw is the second to cause problems for Xeon, which Intel unveiled in June (EN, June 29). The bug is only a problem in high-end network servers that use Xeon's "error correcting code" to ensure proper data processing. Intel said it will solve the problem by screening the new chips more thoroughly. Those with error correcting code that pass the new tests will be shipped, and the fix is expected to take about 10 days. "It was on our original errata list," noted Mr. High. "We had been working on solutions and, on Friday we went out with the one that was selected. The problem affects error correcting in four-way Pentium II servers using Pentium chipsets. There was some problem with the error correction code so we had to put a fix in place for more tighter screening." The other well-publicized flaw for Xeon caused delays in machines that use Xeon with the new 450 NX chipset (EN, June 29). Some industry observers have speculated recently that the Xeon processor is not selling as well as Intel had hoped. For example, Jerry Worchel, senior analyst at Cahners In-Stat Group, said he is not seeing a lot of demand for Pentium 400MHz processors and computers because the cost is way too high. One of the other reasons he cited, is that PC OEMs are now offering 266MHz processors with color monitors and very good subsystems for $800. "Who wants to buy a computer that is extremely expensive because of the processor when you can get a cheap PC with all the trimmings for about half or even three times less?" said Mr. Worchel. However, Intel's Mr. High disputed that assessment, saying that from what he has heard at Intel, Xeon is selling quite well. "People I talked to here say the thing has been going like gangbusters. From some major OEMs like Dell you can buy a 400MHz system with tremendous configuration with pricing like $2,400. This is tremendously aggressive pricing," causing it to move off of shelves quickly, he added. Mr. Worchel said the big market for PCs is in the sub-$1,000 area and that is where the majority of the PC sales are coming from in the last few quarters. Other reports have also indicated that PC OEMs are hesitant to move to 400MHz Pentium PCs because of the softness in the PC market and fears that the high prices of the processors could send any PC market uptick that might occur in the near-term (EN, July 20) into a downward spiral. In yet another development, Intel is today releasing new pricing information for its current generation MPUs. Mr. High said that Intel intends its next generation Celerons, combined with lower pricing on existing Celerons, to provide a winning combination in the segment zero category, which Intel refers to as the basic PC category. "One interesting aspect of our new pricing is that we introduced the Celeron name in March and the product in April. A lot of people said Celeron doesn't perform well. When (senior VP and GM Paul) Otellini did our earnings announcement, he said that 5 percent of our shipments in the second quarter were Celeron based. "OEMs will get L2 cache versions of Celeron in the third quarter for the holiday season. For the 266MHz and 300MHz Celerons we have adjusted prices to account for new products coming on line by the end of the year. We will have 266MHz and 300MHz versions without L2, and 300MHz and 333MHz versions with L2. That is a formidable lineup for the basic PC category. When you are doing the amount of chips Intel is, 5 percent is a fairly strong ramp." Echoing the old saw that what is good for General Motors is good for the country, Mr. High said if Intel does well in the basic PC category that is good for the industry as a whole. "That will provide a shot in the arm and we hope it does the industry good and Intel good. Come the end of this year we hope the awareness of Celeron will increase. I think Intel will be doing nicely in that segment."