Intel replans its strategy

Facing strong competition from rival Advanced Micro Devices Inc., chip-maker Intel Corp. modified its plans for upcoming server microprocessors, starting in 2007.

Intel affirmed it has canceled a Xeon processor that was scheduled to be released in 2007 and will replace it with another that improves communication with other chips in the system. The new chip, code-named Tigerton, is set to be released in 2007.

"We have the opportunity to deliver better performance in 2007," said Intel spokeswoman Erica Fields. "Therefore, we are canceling a product and replacing it with something else."

The change comes as Intel is being pressured by AMD's server processors that incorporate more efficient chip-to-chip communication. AMD has seen its share of the server market grow as its chips have generally outperformed Intel's offerings.

Fields declined to provide specifics on the new dedicated, high-speed "interconnect" that will be part of Tigerton or describe how it differs from what's being offered by AMD's Opteron processor.

Intel also announced that it is delaying the high-volume release of an update to its Itanium chip for high-end servers. That chip, code-named Montecito, will be shipped in volume in the middle of next year rather than early 2006, Fields said.

Itanium was developed over a decade by Intel and Hewlett-Packard Co., but its sales have never matched expectations. Both companies, however, have remained committed to it, the AP reports.

V.Y.