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Hot off the Press- NEWS
by Tech-edge E-zine

Intel Stops Shipment of New Pentium 4
San Francisco, CA April 14, 2003

Intel Corporation was about launch a double blow to rivals after the earlier release of the new 800 MHz system bus and new "Canterwood" 875P chipset, but something has gone terribly wrong. Intel has for now pulled the companion 3 GHz Pentium 4 processor chip from shipment.

The shipments were halted for an indeterminate period as Intel attempts to resolve a suddenly found "anomaly" in the new P-4 processor chips.

These new Pentium 4 chips are targeted for the video editing, gaming and computing intensive application markets. Somehow slipping through most of Intel's QA, Intel detected "over the weekend" a number of samples to have an unspecified problem serious enough to halt the shipments. If you recall, this isn't the first time Intel has had serious problems with new processor chips that even got out for purchase.

Intel refused to elaborate on the specific nature of the problem, adding to the speculation as to what they might be hiding.

One has to wonder how such an important staged release of linked components could go so disastrously again.

Intel spokesmen Laura Anderson said that the new Pentium 4 processors, which are claimed to run at 3 GHz, were not "performing" as expected. Anderson also stated that the new 875P chipset was not effected by the "anomaly" found in the P-4 processors.

The unique design of the new processor and the chip set would allow computers to make Internet phone calls while streaming digital music.

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Beside giving Intel another black-eye for design or QA, the possibly greatest effect will be on the computer manufacturers that will have to delay new computers awaiting manufacture.

Dell, Gateway and HP were early adopters of the new chipset and delay will likely hurt their marketing plans, and possible damaging Intel's supply relationships. With the downslide of the computer industry, companies are straining to keep customers interest in buy new computers instead of keeping what they have.

Who benefits, obviously AMD is likely to make hey of this unexpected snag in Intel's march. A number of publications, including our own, have shown that the new AMD "Barton": Athlon XP3000+ processor is a match, if not superior, to the new multi threading Intel Xeon Pentium-4 3.06GHz processor in most applications.

Intel Shuts Down Custom Chip Unit
In a further blow to Intel's market power and prestige, Intel announced that the 18 month-old Custom Chip Group has been shut down.

This group was an attempt by CEO Craig Barrett to expand Intel beyond their "core offering". The failure of this crucial unit will certainly benefit rival IBM, which had considerably more clout in aggressively promoting its own customer chip group. Intel stopped accepting orders at the beginning of the year.

Custom chips are used in vital specialized applications such as communications and video.Intel's Microelectronics Services group was formed in September 2001, a month before IBM's group. Never the less, IBM has been far more successful in attracting new clients.



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