Paul and thread, article...Xeon Freeze -- Intel Confirms Server Chips In Short Supply... September 22, 1998 COMPUTER RESELLER NEWS : Santa Clara, -- Calif.Hoping to get a new four-way Xeon server to a customer? Think again.
Intel Corp. is grappling with low yields on its latest high-end Pentium II processor as well as an ECC errata when the processor is placed in a four-way server configuration, said several sources. These problems have forced Intel to ship only one-quarter of its orders to some server manufacturers, said hardware OEM sources.
"We placed a purchase order for Xeon chipsets over a month ago and they were due to arrive [last week], but my purchasing agent was informed we would only receive about 25 percent of what we ordered," said one OEM source who asked not to be identified.
"Right now, we cannot meet all the demand," said John Miner, vice president and general manager of Intel's enterprise server group. "It's an unfortunate short-term problem."
Some PC makers, however, said it is not just a demand problem but rather a screening problem. Several companies said Intel is privately screening chips for the ECC errata. In June, Santa Clara-based Intel said the Xeon chip could lock systems when used in certain configurations.
"They're hand-screening the 400MHz Xeon processors, picking out what's good for four-way and that's going in one bucket, and the ones that will be OK in single and two-way systems go into another," said one source, adding there is not a yield problem for one- or two-processor systems, which do not exhibit the errata.
Intel had similar shortages with the Pentium Pro, but several vendors said the Xeon situation is worse. "There is a serious supply shortage," said one source.
Intel said it is preparing to ramp up production of ECC-enabled processors, effectively putting an end to the screening process. Supply issues should gradually diminish within a few weeks, said an Intel spokesperson.
Still, growing interest in high-end servers is exacerbating the situation.
Only a few vendors, Dell Computer Corp., Round Rock, Texas; Compaq Computer Corp., Houston; and Unisys Corp., Blue Bell, Pa.; are shipping four-way Xeon servers in volume. These vendors said the product is still constrained.
Compaq would not comment on Xeon supply, but Paul Santeler, segment director for Enterprise x86 Servers, said, "Quite frankly, the response from our customers has been tremendous. . . and we just can't build enough [Xeon servers]."
Spokespeople at Unisys and Dell said they could not ship enough products.
Meanwhile, Hewlett-Packard Co., Palo Alto, Calif., and IBM Corp., Armonk, N.Y., are among several major vendors preparing to roll out four-way servers over the next 30 days. HP would not comment on Xeon availability. Jim Gargan, director of product marketing for IBM's Netfinity server unit, said IBM was getting all the processors it needs.
"This situation isn't all that surprising," said Kelly Spang, analyst for Technology Business Research, Hampton, N.H. "Intel is discontinuing, if they haven't already, their Pentium Pro line, and the server guys have to go somewhere." |