Y - Intel Said To Delay New Celeron Chips Amid Manufacturing Shortage

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Title: Intel Said To Delay New Celeron Chips Amid Manufacturing Shortage

April 21, 2000

NEW YORK -- Intel Corp., the world's biggest maker of computer chips, reportedly has pushed back the release of two desktop processors because of a manufacturing crunch that has created shortages.

Santa Clara, Calif.-based Intel (INTC) said it delayed the release of 633- and 667-megahertz Celeron chips by about two months, industry sources close to the company told CNET News.com.

The chips, designed for budget PCs, were to appear in computers beginning next week, but will emerge toward the end of June, along with a 700-megahertz Celeron and a 933-megahertz Pentium III.

CNET said an Intel spokesman wouldn't comment on the Celerons' release date but said they are slated to come out in the second quarter.

Intel is recovering from a chip shortage that has partially throttled personal-computer manufacturers for months. Since October, high demand and manufacturing problems caused a shortage of both high-end Pentium IIIs and low-cost Celerons. Dell Computer Corp., the No. 1 direct seller of PCs, and Gateway Inc., among others, complained about chip shortages denting sales.

Intel underestimated PC demand when it prepared its manufacturing plans last year. Intel has since increased production to meet the unexpected surge in demand and has stepped up spending on new facilities and equipment to boost output using its 0.18-micron process technology.

Advanced Micro Devices Inc. may benefit from the delay, the report said. Sunnyvale, Calif.-based AMD said last week that it has produced a surplus of its touted Athlon processor. Computer makers, tiring of Intel chip shortages that have lingered, may begin to adopt more Athlons. In the past, Intel often capitalized on AMD's inability to manufacture chips in adequate volumes.

(Compiled from Dow Jones Newswires and other sources) Copyright (c) 2000 Dow Jones & Company, Inc.

http://dowjones.wsj.com/n/ON-CO-20000421-000034-d-main-c1.html

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-- (Dee360Degree@aol.com), April 22, 2000

Answers

It's interesting to note the "manufacturing problems" statement in this news story.

-- JackW (jpayne@webtv.net), April 22, 2000.

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