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Intel confirms it's using third party chipsets

Shortage will continue but it will be back
Wed Oct 19 2005, 16:30
ANDY BRYANT, Intel's CFO, confirmed in a conference call with analysts that it continues to have shortages of chipsets and is using other suppliers.

The shortage will continue into its fourth financial quarter, said Bryant, and likely for longer.

It is using third party suppliers for low end desktop systems. As we've reported before, ATI is one of Intel's third party suppliers.

The shortage is not caused by any type of manufacturing glitch at the factories, but because it's important for Intel to move its fabs to 300mm production, he said.

Bryant said he was confident that 2006 would be a good year, provided it can keep its factories full and there's no worldwide general economic downturn.

Paul Otellini, CEO of Intel was also present at the conference call. He said that Intel has three events in its server line for Paxville DP, Paxville MP later this quarter and Bensley in Q1 which will give the firm a bigger pop. In Q1 it will introduce Sossaman and mid year there will be the next generation of 65 nanometre products. Those events happening over a quarter apiece give Intel a much more competitive roadmap, he said. "I'd be expect to be able to exploit it," he said. "We will ship the heck out of them when we get them."

Otellini said Intel "backed off" on the low end chipsets during 2005 because of capacity restraints. It will re-enter that part of the market again and be a broadbased player in that sector. µ


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