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Intel hits 1.5-GHz mark in chip demonstration
By Michael Kanellos
Staff Writer, CNET News.com
February 15, 2000, 10:50 a.m. PT
update PALM SPRINGS, Calif.--The microprocessor speed race moved forward
again today as Intel demonstrated one of its upcoming Willamette processors
running at 1.5 GHz.

The demonstration, made during a keynote address by chairman Andy Grove and
senior vice president Albert Yu here at the company's developers' forum,
came as part of a showcase of Intel technology coming this year.

Although consumers won't see chips running this fast on shelves for a while,
Intel will release Pentium IIIs running at 1 GHz or faster by the second
half of the year as well as the next-generation Willamette chips running at
the same speed, Yu said.

"We will enter volume production (on the 1-GHz Pentium III chips) in the
third quarter this year for performance desktops and low-end servers," Yu
said, holding up one of the versions of Willamette to the audience. Yu also
showed coming computers from IBM, Hewlett-Packard and Dell Computer that
will contain 1-GHz Pentium IIIs.

Willamette will come out more gradually. Hundreds of thousands of the chips
will come out this year, with millions to follow in 2001.

Intel and Advanced Micro Devices have been engaged in a game of
one-upmanship in terms of speed since last summer, when AMD released its
touted Athlon processor. Both companies have advanced their product road
maps so that AMD is now selling an 850-MHz Athlon and Intel is selling
800-MHz chips earlier than planned.

The competition has extended to technology demonstrations. Earlier this
month, on a day when Intel was discussing its 1-GHz chips at a semiconductor
design convention, AMD demonstrated an Athlon running at 1.1 GHz.

The Willamette chip barely hit the 1.5-GHz barrier today. The chip went to
1.499 GHz, and then dropped to 1.492 GHz before popping to 1.5 GHz.

While speeds are becoming faster, both companies--but particularly
Intel--have had trouble meeting demand for these faster chips because they
are being released before historically normal inventories exist. Demand has
also been slightly higher than expected in the first quarter, said Paul
Otellini, general manager of the Intel Architecture Business Group.

Intel is trying to catch up with chip demand by expanding production.

"We have five factories going full blast. Demand has far exceeded
expectations," Otellini said. "By the second half (of the year), we are
going to have six factories."

Yu also laid out the product plan for the year. In the first half, Pentium
IIIs and Xeons will hit 900 MHz or more, with 1-GHz- plus coming in the
second half. Celeron chips will hit 600 MHz in the first half and go to 700
MHz or faster in the second half.

The second half will also see the introduction of Timna, a Celeron with an
integrated graphics chip and memory controller. Although originally rumored
to be compatible with next-generation Rambus memory, the chip will at first
work with ordinary, less-expensive memory. The Rambus move will occur in
2001, said Pat Gelsinger, an Intel vice president.

Grove, for his part, reiterated his belief that building the Internet
infrastructure will drive the industry. Server demand will explode in the
next few years as more companies move to e-commerce. Consequently, hosting
and services will also expand.

Business-to-business e-commerce now only amounts to $400 billion annually.
In four years, it will hit $7 trillion, which still will only be a portion
of the $100 trillion in overall business commerce, he said.

"We are going to follow the bits and put devices everywhere," he said.

Eventually, three types of applications will dominate the Internet, he said:
information applications for finding or aggregating information;
transactional applications, for consumer purchases; and market applications
for business-to-business commerce.

With all of the construction that needs to take place, Intel and others will
need to concentrate on keeping costs down. Interestingly, two of three
e-commerce CEOs brought on stage to tout the benefits of e-commerce and
Intel servers said they were using the low-cost Linux OS.

"All of this is predicated on us collectively to do the same thing that we
did in the IT industry," Grove said, adding that there will be a "relentless
drive to higher performance at lower prices."



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