Intel confirms Pentium 4 shortages

SHORTAGES OF 478 PIN Pentium 4s are being blamed on excess demand, Intel has told its distributors, although it claims that any problems will be short, rather than long term.

That follows a story we wrote earlier in the week after we heard that availability of 478 pin chips was so constrained that Intella might suffer in its fourth quarter.

Sure enough, it is October which is affected, as the following memorandum from Intel to its disties makes evident.

And the 2GHz Pentium 4 is the item in particularly short supply - also the processor with the healthiest margins right now.

But the 900MHz Xeon, which we first reported earlier this year had heat dissipation problems - which were supposed to have been fixed in August - will only start shipping in November, according to the memo.

Intel maintains that despite some problems, supply of the chips is, overall, healthy. µ

Intel Confidential Information
Disclosed under NonDisclosure Agreement
This is a notice to inform you of the current availability outlook for the Intel processors sold through authorized distribution channels. This outlook statement is based on current expectations—it is forward looking and actual results may differ. We recommend that system integrators contact their authorized distributors for specific availability and pricing information.

Intel® Processor Supply Summary
Overall supply of Intel processors in the distribution channel is at healthy levels to support expected sales.

· Overall supply of Intel® Pentium® 4, Pentium® lll and Celeron® processors in the distribution channel is healthy.

· Intel is continuing to ship a mix of 423-pin and 478-pin Pentium 4 processors into the distribution channel in Q4'01. System integrators should continue to focus on integrating 423-pin Pentium 4 processors through mid Q4'01.

· Supply of Pentium 4 processors in the 478-pin package continues to ramp throughout Q4'01.

· Intel plans to offer Pentium III processors to support legacy designs in Q4'01 and into mid 2002.

· The Intel Celeron processor 1.20 GHz was introduced on October 2, 2001. The boxed version of this processor is shipping in the distribution channel now. With the launch of this product, Intel continues to offer higher performance and better value to channel customers.

For more specific information about availability of Intel processors for the distribution channel see below:

Boxed Intel® Pentium® 4 Processor
The Intel® Pentium® 4 processor ramp continues to accelerate in the distribution channel and is currently shipping at speeds of 1.40 - 2 GHz in the 423-pin package and 1.50 - 2 GHz in the 478-pin package. Overall supply of boxed Pentium 4 processors is healthy to support expected sales, although Intel expects the supply of processors in the 478-pin package to be limited in October. This limited supply is not a product health issue but rather an overall strong demand for the newly released 478-pin package as manufacturing of the new package ramps. System Integrators are encouraged to continue integrating systems based on boxed Pentium 4 processors in the 423-pin package through mid Q4'01 and transition to the 478-pin package as availability improves.

Intel and 3rd party desktop boards provide similar feature sets on both 423-pin and 478-pin offerings to enable easy platform transition. For example, Intel's D850GB (423-pin) desktop board offers similar feature set to the D850MV(478-pin).

Intel continues to ship the boxed D850GB desktop board to support the Pentium 4 processor in the 423-pin package. Intel is also now shipping in volume, the four new desktop boards that have been recently released in the distribution channel to support Pentium 4 processors in the 478-pin package. Those boards are the D850MD and D850MV based on the Intel® 850 chipset and the D845HV and D845WN based on the Intel® 845 chipset. Other motherboard manufacturers are also shipping boards that support the Pentium 4 processor. For more information about boards that support the Pentium 4 processor, go to the Technical Center on program.intel.com located at:

http://program.intel.com/shared/private/techcenter/index.htm.

The successful introduction of the Intel Pentium 4 Processor at 2 GHz has also created a high demand for this speed in the distribution channel, for both the 423 and 478-pin packages. This high demand is expected to limit supply of boxed Pentium 4 processors at 2.0 GHz throughout Q4 as volume ramps in the distribution channel. Intel also plans to begin ramp of Pentium 4 processors on 0.13-micron process technology in speeds of 2 GHz and higher, starting in January of 2002. System Integrators should check availability with their Intel Authorized distributors.

Boxed Intel® Pentium® III Processor
Overall supply of Intel® Pentium® lll processors 1 GHz in the distribution channel is healthy. Intel plans to offer the Pentium III processor through mid-2002 for legacy server, government and business needs. Pentium lll processors 933 MHz and below are available while supplies last. Intel is also shipping boxed versions of the Pentium lll processor 1.20 and 1.13GHz for desktop systems based on Intel's 0.13-micron process technology with 256-KB L2 cache into the distribution channel now. These desktop processors require motherboards that are specifically designed to the Intel specification for 0.13-micron process technology desktop processor support. Intel is now shipping the universally designed boxed Intel® Desktop Board D815EA2 and D815EFV for all Pentium III and Celeron processors in the FC-PGA package.

Intel is now shipping a boxed Pentium III processor with 512-KB L2 cache at operating frequencies of 1.13GHz and 1.26GHz for server configurations. These server processors require motherboards that are specifically designed to the Intel specification for 0.13-micron process technology processor support. Intel is now shipping Boxed Intel Server Board S815EBM1 to support the Pentium lll processor. For specific information about this board see

http://program.intel.com/shared/products/servers/boards/s815ebm1/index.htm

For more information on which motherboards support the Pentium III processor with 256-KB or 512-KB L2 cache see the Motherboard Source List.

Boxed Intel® Celeron™ Processors
Overall supply of Intel® Celeron® processors in the distribution channel is healthy. On October 2, 2001, Intel introduced the Intel Celeron processor 1.20 GHz based on 0.13 process technology with 256-KB L2 cache. These desktop processors require motherboards that are specifically designed to the Intel specification for 0.13-micron process technology for desktop processors. Boxed versions of these processors are shipping in the distribution channel now. Intel expects to continue to ramp Celeron processor frequencies offering system integrators a compelling solution for the value segment. Intel Celeron processors 850 MHz and below are available at prices that will enable very attractive system price points. These products will be available while supplies last. Intel is now shipping boxed Intel® Desktop Board D815EGEW.

Boxed Intel® Pentium® III Xeon™ Processor
Overall supply of Intel® Pentium® III Xeon™ Processors in the distribution channel is healthy. The Intel Pentium III Xeon processors provide performance, power and scalability for front-end, mid-range and back-end servers. Intel is currently shipping boxed Intel Pentium III Xeon with operating frequencies up to 700 MHz for multiprocessor servers and up to 1 GHz for dual processor servers. Intel expects to begin shipping boxed versions of the Intel Pentium III Xeonprocessor 900MHz with 2MB of integrated L2 cache in November of 2001.

Please check with your Intel Authorized Distributor for specific pricing and availability information. If you have questions regarding the Intel Pentium III Xeon processors please visit: http://program.intel.com/shared/products/processors/pentiumiii/xeon/index.htm or contact your Intel representative.

Boxed Intel® Xeon™ Processor
On May 21, 2001,Intel introduced the Intel® Xeon™ processor featuring the Intel NetBurst™ micro architecture at 1.40, 1.50 and 1.70 GHz. The Intel Xeon processor boosts the power of Intel architecture-based workstations with the addition of dual-processing capability.

In late September Intel introduced the Intel Xeon processor at 2 GHz. Boxed versions of this product are currently shipping, but high demand for these parts is expected to limit channel availability in the distribution channel during Q4'01. Supply of the Boxed Intel Xeon processor at 2 GHz is expected to catch up with demand in early Q1'02.

Production of boxed Intel Xeon processors continues to ramp during Q4'01 and supply of the Intel Xeon processor at 1.7GHz, 1.5GHz and 1.4GHz is expected to be healthy. Intel recommends that system integrators place orders early with their Intel Authorized Distributor to ensure sufficient stocking levels for the expected ramp.

Please check http://program.intel.com/shared/products/processors/xeon/index.htm for more information about the Intel Xeon processor and 3rd party Workstation Board, Chassis, and Power Supplies.

Boxed Mobile Intel® Pentium® III Processors
Intel is currently shipping boxed mobile Intel® Pentium® lll processors-M @ 1.20, 1.13, 1.06, 1 GHz, 933 and 866 MHz into the distribution channel. The mobile Pentium lll processor supports Enhanced Intel SpeedStep™ Technology. The new Mobile Intel Pentium III Processor-M is based on new Intel 0.13 micron technology, and delivers significant benefits to the user including maximum performance and capability, mobility and connectivity, multitude of price points and form factors, and minimal cost.

Intel is also shipping boxed mobile IntelPentium lll processors @ 1 GHz, 900, 850 and 800 MHz into the distribution channel. The mobile Pentium lll processor supports Intel SpeedStep Technology, and has lower power consumption, smaller footprint, and higher operating temperature specifications, making it the ideal processor for performance mobile PCs.

Supply of both boxed mobile Pentium lll processor-M and boxed mobile Pentium lll processors in the distribution channel is expected to be healthy. Please contact your Intel Authorized Distributor for specific pricing and availability information.

Boxed Mobile Intel® Pentium® III Processors
Intel is also shipping boxed mobile Intel® Celeron® processors @ 933, 866, 800A, 800, 750, and 733 MHz in the distribution channel. The mobile Intel Celeron processor delivers great quality at an exceptional value and provides the ideal solution for the value mobile PC market.

The mobile Celeron processors @ 933, 866, 800A and 733 MHz has 133 MHz PSB in uFC-PGA package. The mobile Celeron processors @ 800 and 750 MHz has 100 MHz PSB in uPGA2 package.

Supply of boxed mobile Celeron processors in the distribution channel is expected to be healthy. Please contact your Intel Authorized Distributor for specific pricing and availability information.

Intel has created a new Quick Response Program designed to quickly supply boxed mobile processors to our distribution channel customers in North America. The Quick Response Program creates a central supply of boxed mobile processors for customers. For more information, please visit:

http://program.intel.com/shared/private/products/platforms/mobile/respond.htm

Intel is also implementing the Build-To-Order (BTO) Notebook Program. The BTO Notebook Program is an Intel-led market development program which guides 3rd party notebook manufacturers to meet the needs of Intel system integrators with mobile PC building blocks.

Intel is currently working with Alphatop*, Aopen*, Arima*, Asus*, Clevo*, Compal*, FIC* and Mitac* to enable the latest BTO notebook platforms to system integrators. Intel has tested selected BTO notebooks from these notebook manufacturers for boxed mobile Intel processor compliance and functional compatibility. Please visit the Tested Notebook List on program.intel.com for more information. Intel is working to have more vendors and BTO notebooks enabled in the future, ensuring product selection and product differentiation for the distribution channel.

If you have any questions regarding the Intel BTO Notebook Program, BTO mobile platforms or boxed mobile processors, please see http://program.intel.com/shared/private/products/platforms/mobile/index.htm or contact your Intel representative.

Thank you for your support of the Intel Boxed Product Program. µ