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Intel to launch new Israeli-developed processor
[June 22, 2006]

Intel to launch new Israeli-developed processor


(Israel Business Arena Via Thomson Dialog NewsEdge) When Advanced Micro Devices Inc. (NYSE:AMD) launched its new 64-bit Athlon and Opteron processors in 2003, the company began to gnaw at Intel Corp.'s (Nasdaq:INTC) absolute domination of the server processors market. The launch of AMD's processors reduced Intel's market share from 85% to 77%.

Early this year, Intel suffered another blow, which it could not ignore, when computer maker Dell Inc. (Nasdaq:DELL) announced that it would use AMD processors in some of its new server models.

Giants like Intel do not surrender easily, and its response can be expected on Monday, when it launches its new Woodcrest processor for servers. This will be the first in a series of three new processors. The second in the series will be a processor for desktop computers and work stations, to be called Conroe, whose launch is scheduled for July. The third processor, called Merom, designed for mobile computers, will be launched soon afterwards.


Laboratory tests by Intel customers such as Dell and Hewlett-Packard Co. (NYSE:HPQ) indicate that the new processors are up to 50% faster than earlier ones. They are applauding the development staff at Intel Israel, which is behind the core development of the new generation processors. This is the same division that developed the Pentium M processor, which Intel used to conquer the mobile computer market.

The problem is that Intel will find it very hard to recapture the market share it lost to AMD. Even if the new processors bring Intel's customers back, when entire organizations get used to a certain configuration, it's very hard to turn the wheel back, and AMD has been successful in gaining a foothold not only in Dell, but also at Hewlett-Packard, IBM Corp. (NYSE:IBM), and Sun Microsystems Inc. (Nasdaq:SUNW).

Published by Globes [online], Israel business news - www.globes.co.il - on June 22, 2006

Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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