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Top Stories for March 12, 1999 (details below)
Semiconductor Business News National reports $27.2 million loss as Cyrix MPUs slump
Electronic Buyers' News National's loss still beats estimates
Semiconductor Business News AMD rebuts one lawsuit, hit by second
Electronic Buyers' News Creditor, Shareholders Take Critical Look At AMD
Electronic Buyers' News PC133 SDRAMs will debut in June, industry meeting is told
InfoWorld Electric Privacy Firm Claims to Bypass Intel ID Protection
Program can bypass Intel's scheme for turning off PIII serial IDs, Zero-Knowledge says.
C/Net How serious is Pentium III's privacy risk?
ZD Net News Intel admits PII serial snafu
The Register Files
The Register Intel: S3 had us by the goolies
The Register Each Merced pin to cost nearly eight bucks
The Register Unique ID codes on mobile PIIs no accident
The Register AMD takes Fujitsu foundry route
Today's Related Stories
C/Net National Semiconductor posts loss
ZD Net News National Semi beats analyst estimates in 3Q
Computer Reseller News Intel Discovers Serial-Number Error

 

x86 Weekly News

Collected By Robert R. Collins

Week of March 8, 1999

Older News

March 12, 1999

National reports $27.2 million loss as Cyrix MPUs slump

March 11, 1999
Semiconductor Business News

A slump in Cyrix microprocessor sales contributed to a $27.2 million net loss at National Semiconductor Corp. in the third fiscal quarter, ended Feb. 28, according to the company here today.

National said its net sales slipped 23% to $500 million in the third fiscal quarter compared to $650 million in the same period a year ago when the company reported a $22.3 million net income, including a $5.2 million charge. Reduced sales of Cyrix MPUs from the previous quarter were partly offset by improvements in wireless IC and analog device shipments in the quarter, said the company. National blamed the slump in Cyrix processor sales on a seasonal slowdown in PC demand.

See Today's Related Stories

National's loss still beats estimates

By Mark Hachman

March 11, 1999
Electronic Buyers' News

National Semiconductor reported a loss of $27.2 million on sales of $500 million for its third fiscal quarter during a period of what executives nevertheless called “slow improvement.”

Revenue dropped a sharp 23% from the same period a year ago, when the company earned $26.2 million. The Santa Clara, Calif.-based company lost 16 cents per share and predicted a similar loss for the current fourth fiscal quarter based on a 12% sequential drop in new orders. Nevertheless, National beat the Wall Street consensus estimate of a loss of 20 cents per share.

See Today's Related Stories

AMD rebuts one lawsuit, hit by second

By Will Wade

March 11, 1999
Semiconductor Business News

Advanced Micro Devices Inc. here today denied allegations within a class action lawsuit filed this week that asserted the company artificially inflated its stock price over the past few quarters with overly optimistic projections for revenue from its K6 microprocessors. Even as the company rebutted the claims, a second, nearly identical suit has also been announced.

"The lawsuit filed on behalf of a shareholder is totally without merit," said Thomas McCoy, senior vice president and general counsel at AMD, noting that the company intends to fight the charges.

 

Creditor, Shareholders Take Critical Look At AMD

By Mark Hachman

March 11, 1999
Electronic Buyers' News

Advanced Micro Devices' manufacturing difficulties and volatile stock price have prompted a possible downgrade of its credit rating and two class-action lawsuits.

Moody's Investors Service has placed AMD under review, evaluating its credit and secured debt in light of AMD's recent announcement that manufacturing difficulties would contribute to a significant shortfall for the current quarter. Moody's is reviewing all AMD's senior debt offerings, including its $400 million Senior secured public debt, $517 million unsecured public debt, $250 million bank loan, and secured and unsecured shelf registrations.

 

PC133 SDRAMs will debut in June, industry meeting is told

By Jack Robertson

March 11, 1999
Electronic Buyers' News

A jammed industry meeting on PC133 SDRAMs this week in San Jose was told that PC desktop and servers with the new memory chip will be introduced in June.

Reliance Computer Corp., a San Jose-based chip-set maker, sponsored the PC133 session, which drew 150 representatives from PC companies, memory vendors, chip-set makers, and microprocessor producers. Originally slated to take place at Reliance's headquarters, the meeting was moved to a nearby hotel to accommodate the overflow crowd.

 

Privacy Firm Claims to Bypass Intel ID Protection
Program can bypass Intel's scheme for turning off PIII serial IDs, Zero-Knowledge says.

By Ephraim Schwartz

March 11, 1999
InfoWorld Electric

Zero-Knowledge Systems, a company that offers its customers anonymity while Web surfing, claims to have hacked Intel's software utility program meant to turn off the serial IDs in Pentium III processors.

A Zero-Knowledge programmer created an ActiveX application that goes around Intel's Pentium Serial Number Control Utility and places a cookie file inside the user's system. Once the cookie is in place, even if the user turns off the unique chip serial number, the number can be broadcast.

Zero-Knowledge President Austin Hill says he was concerned with his customers' right to privacy. "We are developing privacy software. Our users are putting a certain amount of trust in us to make sure information about them can't be leaked," said Hill.

 

How serious is Pentium III's privacy risk?

By Stephanie Miles

March 11, 1999
C/Net

Is the Pentium III, with its much-criticized processor serial number, this generation's Edsel?

Probably not, say marketing experts, but Intel's experience with promoting the chip is a lesson in what can go awry in an ambitious marketing campaign.

Like Ford with its Edsel, Intel included a number of fancy new features in its product to improve performance, including a processor serial number designed to improve a major roadblock to e-commerce: security inside electronic transactions.

 

Intel admits PII serial snafu

By Robert Lemos

March 11, 1999
ZD Net News

PC chip giant Intel Corp. admitted on Wednesday that its controversial processor serial number had been inadvertently included in one of its lines of mobile Pentium II processors.

"We were informed by a customer that the chip ID was present in the mobile Pentium II processor in mobile module form," said George Alfs, a spokesman for the Santa Clara, Calif., company.

The processor serial number, or chip ID, is a 96-bit number that uniquely identifies the processor to any piece of software that requests the ID.

See Today's Related Stories
The Register Files

Intel: S3 had us by the goolies

By Mike Magee

March 11, 1999
The Register

Sources close to Intel told The Register today that if S3 had squeezed harder last year, it could have forced Intel to back down on future technologies.

S3 has bounced back this year on the technology and sales front with its Savage 4 3D acceleration chipset. But last year was a different story.

Our sources close said: "S3 was in a parlous state because its strategy on the graphics front was not good. The cash flow situation was not good either but it had very good patents it bought in an auction, including some from Exponential."

 

Each Merced pin to cost nearly eight bucks

By Mike Magee

March 11, 1999
The Register

After we had our Merced photographs blown up out of all proportion, we carefully counted the pins on each side of the array and came to the following conclusions.

If a Merced cartridge contains two arrays which amount to 418 balls and the chip costs $3,000, that will mean each pin costs $7.71.

If it's only $2,000, each pin will be cheaper.

 

Unique ID codes on mobile PIIs no accident

By Mike Magee

March 11, 1999
The Register

Intel has continued to come under fire over unique ID codes on the PII chip fiasco it engineered.

Yesterday, the chip giant claimed the problem was a bug -– a phenomenon Intel prefers to call an erratum. Now it is claiming the bug was driving the van that delivered the chips.

Readers of The Register have since cried foul, accusing Intel of hastily covering its tracks

 

AMD takes Fujitsu foundry route

By Mike Magee

March 11, 1999
The Register

AMD has decided to second source some of its wafer production. It will use its long time partner Fujitsu to help it produce Flash, thus freeing up more capacity.

Robert Stead, European marketing director of AMD, acknowledged this morning that producing enough chips to meet demand was the company's main problem.

The fab in Dresden will only produce K7s, he said. But now it is to use Fujitsu, its long-time Flash partner in Europe.

 
Today's Related Stories

National Semiconductor posts loss

By Reuters

March 11, 1999
C/Net

National Semiconductor, a maker of a wide range of computer chips, reported a narrower-than-expected third quarterloss, but warned it was more cautious about the fourth quarter due to an uncertain market for personal computers.

The Santa Clara, California-based company reported a net loss of $27.2 million, or 16 cents a share, compared with a profit of $26.2 million, or 16 cents a share a year ago, excluding a one-time charge for an acquisition in the year-ago period.

 

National Semi beats analyst estimates in 3Q

By Sergio G. Non

March 11, 1999
ZD Net News

National Semiconductor Corp. lost a little less than Wall Street expected in the third quarter, but the fourth quarter won't be any better, the company said.

In results released after market close, the chipmaker posted a fourth quarter loss of $27.2 million, or 16 cents a share. First Call's survey of 20 analysts predicted a loss of 20 cents a share.

Fourth quarter sales fell to $500 million from $650 million a year earlier, when National Semiconductor earned $26.2 million, or 16 cents a share. Revenue largely due to lower sales of the Cyrix processor used in PCs, although National Semiconductor's analog and wireless businesses made up for some of the Cyrix decline.

 

Intel Discovers Serial-Number Error

By Marcia Savage

March 11, 1999
Computer Reseller News

Intel discovered a manufacturing error produced a prototype of its controversial
processor serial number in some of its newer chips for notebooks.

An Intel spokeswoman said the company found the prototype serial number in some 366-MHz and 333-MHz mobile Pentium II chips with 256 kilobytes of integrated cache and 266-MHz and 300-MHz Celeron processors. All of those chips were introduced Jan. 25.

 
March 11, 1999

Software claims to undo Pentium III fix

By Michael Kanellos and Stephanie Miles

March 10, 1999
C/Net

Canadian software developers say they have created a program that can obtain the Pentium III processor serial number despite the privacy protection measures taken recently by Intel.

Zero Knowledge Systems of Montreal said today that it has developed an ActiveX control that can retrieve the serial number under certain circumstances, even after a software repair released last month by Intel has disabled the feature and ostensibly "hid" the number from prying eyes.

 

Intel privacy flap spreads to notebooks

By Michael Kanellos

March 10, 1999
C/Net

Intel conceded today that it has incorporated a prototype version of its controversial processor serial number feature on certain Pentium II and Celeron chips for notebooks.

The chipmaker said it released a fix today to disable the feature, which until now had been known to exist only on the new Pentium III processor. Privacy advocates say such information can be used to obtain private information of people who use computers with such processors.

See Today's Related Stories

AMD tries to placate stockholders

By Michael Kanellos

March 10, 1999
C/Net

AMD will add a 9th member to its board of directors at the upcoming stockholders' meeting in a compromise move to placate a pension fund upset with chairman and chief executive W.J. "Jerry" Sanders.

An annual AMD stockholders' meeting wouldn't be complete, it seems, without an attempt by disgruntled shareholders to oust Sanders or limit his power inside the company.

Sanders, the colorful and controversial founder of the company, has been criticized in the past for lavish pay packages, especially in light of the company's troubles, and for holding an excess of power.

 

Broader Intel case reportedly still alive

By Reuters

March 10, 1999
C/Net

The broader Federal Trade Commission investigation of Intel is reportedly alive and active despite the chipmaker's settlement of a narrow set of antitrust charges earlier this week.

FTC investigators are expected to proceed on a couple of key issues, such as whether Intel is using its market power in microprocessors to bully its way into ancillary markets, the Wall Street Journal reported today, citing industry executives and others familiar with the matter.

 

In face of Intel-FTC settlement, Intergraph presses on

By Lisa DiCarlo

March 10, 1999
PC Week Online

With Intel Corp. about to settle with the Federal Trade Commission, what's next for Intergraph Corp.?

The workstation maker was a key part of the FTC's antitrust case and remains embroiled in its own legal battle with Intel (Nasdaq: INTC), dating back to 1997. Intergraph (Nasdaq: INGR) executives say the company will push on with its own suit, which is expected to go to trial early next year.

Why continue? Because, Intergraph officials contend, the company has yet to recover from the wounds Intel inflicted on it at the start of their patent-infringement dispute.

 
The Register Files

Dixon Intel mobile PIIs have serial numbers -- it's a bug, official

By Mike Magee

March 10, 1999
The Register

A Register reader is claiming that Pentium II/mobiles using the Dixon cores embed unique serial numbers and has posted information on his site to back up his claim. And now Intel has confirmed it has a manufacturing problem.

Pierre Chassaing's Web site produces evidence for his claim.

He used a utility called WCPUID to interrogate a Dell Inspiron 7000 laptop.

An Intel representative confirmed there was a problem. He said: "There is an erratum in a limited number of the mobile processors. Some prototype circuitry has gone through. We'll do a BIOS patch in the next day. This was not intentional."

 

1394 Trade Association replies to Intel Firewire snub

by James Snider, chairman 1394 Trade Association

March 7, 1999
The Register

I have just read Intel Snubs IEEE 1394 for USB 2.0 by Tony Smith.

On balance, I found it to be an accurate portrayal. I would like to add some more facts for your consideration.

1394 is the undisputed winner in the Consumer A/V realm. It is being promoted by the Federal Communications Commission for inclusion in DTVs. It has been shipping in digital camcorders since the summer of 1995 and is currently in camcorders from Canon, Sony, Panasonic, Sharp and JVC.

 
Today's Related Stories

Intel admits PII serial snafu

By Robert Lemos

March 10, 1999
C/Net

PC chip giant Intel Corp. admitted on Wednesday that its controversial processor serial number had been inadvertently included in one of its lines of mobile Pentium II processors.

"We were informed by a customer that the chip ID was present in the mobile Pentium II processor in mobile module form," said George Alfs, a spokesman for the Santa Clara, Calif., company.

The processor serial number, or chip ID, is a 96-bit number that uniquely identifies the processor to any piece of software that requests the ID.

 
March 10, 1999

Intergraph To Pursue Own Case Against Intel

By Reuters

March 9, 1999
TechWeb

Intergraph said it will continue to pursue its own separate court case pending against Intel despite the chip giant's proposed antitrust case settlement with the government.

The U.S. Federal Trade Commission announced a surprise settlement with Intel earlier on Monday, one day before a major antitrust trial against the company was to begin.

The government had accused Santa Clara, Calif.-based Intel of coercing three major, established customers, including Intergraph, into granting access to their technology free. Details of Monday's settlement were not disclosed.

 

S3 to power Intel PC-on-a-chip's 3D graphics

By Tony Smith

March 9, 1999
The Register

Intel's favourite 3D graphics specialist, S3, today announced a heap of statistics to show it's growing strength in the PC graphics arena.

Hints also emerged about the company's future products, including a possible 3D-enabled PC-on-a-chip part, jointly developed with Intel.

The numbers centred on the success S3 is having with its Savage4 3D acceleration chip-set. The company claimed it had signed up 36 new customers this year, and was on target to make over $150 million out of the deals.

See more stories in The Register Files

AMD's problems stem from factory

By Michael Kanellos

March 9, 1999
C/Net

Real estate is at the heart of AMD's problems.

Analysts say Advanced Micro Devices--which announced yesterday that it would report a "significant" financial loss for the first quarter and lay off about 300 workers in the first half--is essentially facing problems because it does not have enough fabrication facilities, or fabs, to consistently compete with archival Intel.

The "fab" question goes to the heart of the pricing and volume dynamics of the microprocessor industry. In short, AMD has one microprocessor fab, while Intel has 13 and is building more. When Intel wants to boost the speed on a chip, it tries out the new design in one fab and, when the kinks are worked out, it rolls the manufacturing technique out to the rest of the factories in a process called "Copy Exact."

 

AMD Will Lay Off 300 Employees

By Eric Hausman

March 9, 1999
Computer Reseller News

Advanced Micro Devices Inc. said it plans to lay off 300 employees as part of a restructuring program in the wake of an anticipated "significant" loss in the current quarter.

S. Atiq Raza, AMD co-chief operating officer and chief technical officer, said the Sunnyvale, Calif.-based company will fall short of its goal of shipping 5.5 million units of AMD-K6 family processors in the current quarter, ending March 28, which will result in the loss.

 

AMD's shares tumble on earnings warning

March 9, 1999
SiliconValley.com

Shares of computer chip maker AMD tumbled more than 10 percent this morning after the company forecast a ``significant'' loss for the current quarter and a restructuring program that will cut about 300 jobs over the next six months.

In an announcement after financial markets closed Monday, AMD also said it would fall short of its goal of shipping 5.5 million K6 processors during the quarter ending March 28.

 

Fear Of Chip Slowdown Brings Down Tech Stocks

By David Jastrow

March 9, 1999
Computer Reseller News

Investor fears of a slowdown for chip companies caused tech stocks to slip during a shaky Tuesday on Wall Street.

The Dow Jones Industrial Average dropped 34 points to 9694 and The Nasdaq fell 5 points to 2393. Analysts said the decrease was caused by rumors of disappointing first-quarter results for technology stocks.

Chip makers took the biggest hit but seemed to have a domino effect on other hardware stocks. Shares of Intel plunged 4 5/16 to 115 5/16 amid whispers that it will report a disappointing first quarter. Monday, the chip giant rose 5 points after settling antitrust charges with the Federal Trade Commission.

 

Intel drops on shortfall rumors

By Reuters

March 9, 1999
C/Net

Intel declined to comment on market rumors that it would soon pre-announce a first quarter earnings shortfall, fueling a drop in its stock today.

"I can't comment on market rumors," said Tom Waldrop, a spokesman for Santa Clara, California-based Intel.

Intel shares dropped $4.31 to $115.31 in very heaving trading, especially in the last hour before the market closed.

 
The Register Files

Intel, itself, warns PIII ID number not secure

By Mike Magee

March 9, 1999
The Register

A kindly reader has taken the trouble to read through Intel's application note literature on the Pentium III and has discovered the company has no faith in its own serial number technology.

The reader said: "Today I was perusing through to bone up on CPU ID and PSN of the Pentium III and found the following interesting disclaimers"

PSN not reliable From page 16, section 4.0 entitled: "Processor Serial Number": (Identical paragraph in App Note AP-909, March 1999,"Intel Processor Serial Number", Order #245125-001, Page 4-5):-

 

Intel sidesteps FTC probe

By Mike Magee

March 9, 1999
The Register

The US Federal Trade Commission (FTC) was supposed to begin its legal case against Intel Tuesday but reached a settlement late Monday, thus denying us the courtroom dramas witnessed in the trial between the Department of Justice (DoJ) and Microsoft.

The FTC had based its case on the proposition that Intel effectively holds a monopoly on the lucrative microprocessor industry.

 

Compaq, Dell take VIA on board

By Mike Magee

March 9, 1999
The Register

The delay of Camino and Whitney chipsets is pushing major vendors, including Dell and Compaq, into using the alternative VIA chipset.

But Intel is responding to the small Taiwanese firm's challenge by saying it will support both PC-133 and AGP in a new BX-2 chipset, a reliable source tells us.

However, Intel is denying this story. A spin paramedic in the UK said: "We're still 100 per cent committed to Rambus technology." Ahem.

 

Cyrix gets knickers in a twist over pix

By Mike Magee

March 9, 1999
The Register

For the last couple of days, we have badgered Cyrix to give us some kind of statement about the MII-366 pictures we found on the Web.

This is our original story: Hard core multiple Cyrix chips found in cyberspace

But despite a stream of phone calls, so far no-one has taken the trouble to call us back. The only official statement we've got out of them is that there's "no news". Excuse us, but as news journalists, please let us be the judge of that. This is news.

 

K6-III drought continues -- but not in Japan

By Mike Magee

March 9, 1999
The Register

The K6-III is still in desparately short supply in Europe, The Register has learned.

A letter from AMD to a dealer confirms that there are problems supplying the parts.

AMD said yesterday: "The K6-III is unfortunately not yet available from stock (and the K6-III Processor-in-a-Box hasn't been launched yet), but the AMD-K6-2/450AHX will become available (from stock!) during this week."

 

AMD comes a cropper on chip yields

By Mike Magee

March 9, 1999
The Register

An unspecified problem in manufacturing microprocessors led AMD to warn it will make a loss yesterday, as it announced 300 jobs will go.

Rumours had circulated ever since the beginning of this year that a yield problem was affecting AMD K6 production.

Last week, we reported that there was already a dearth of its newest K6-III processors in the marketplace.

 
March 9, 1999

AMD to cut 300 jobs, sees big loss

By Reuters

March 8, 1999
C/Net

Advanced Micro Devices, a maker of microprocessors and other chips, said today it now expected a "significant loss" in its first quarter because of manufacturing problems earlier in the quarter with its core K6 family of chips.

The company also said it would cut 300 jobs over the next two quarters, which will result in a charge against earnings in the first quarter, ending March 28, and in the next quarter.

The job cuts, which represent about 2.2 percent of AMD's total workforce of 13,800, are the first job cuts at AMD in about three years, a spokesman said. More details on the charges will be given when AMD reports first quarter earnings after the market closes on April 6, AMD said.

See Today's Related Stories

TSMC in discussions with Intel

By Jack Robertson

March 8, 1999
Semiconductor Business News

Taiwan Semiconductor Manufacturing Corp. Manufacturing Corp. (TSMC) today confirmed that it had "informal" contact with Intel Corp. about making an unspecified device, which industry sources said would be Direct Rambus DRAMs either for Intel or other memory makers.

A TSMC spokesman said no formal discussions have resulted. An Intel spokesman declined to comment.

Taiwanese foundries have been qualifying themselves with Intel and Rambus Inc. for potential orders in a projected production rampup for the next generation wideband memory chip.

 

Groups press agency on Pentium III

By Stephanie Miles

March 8, 1999
C/Net

Consumer watchdog groups will continue to press the Federal Trade Commission for an investigation into a security feature of Intel's latest processor next week, at the same time adopting a "wait and see" attitude about the latest privacy flap surrounding Microsoft's Windows 98 operating system.

Representatives from the Center for Democracy and Technology will meet with the FTC next Monday to discuss an investigation into the serial code hardwired into Intel's new Pentium III processor.

Privacy advocates charge that a permanent identification number associated with a computer's hardware is an invitation to exploitation and is moreover an ineffective method of security.

 

AMD Rolls Out Faster Mobile Chip

By Marcia Savage

March 8, 1999
Computer Reseller News

The race for megahertz in the mobile market heated up today with Advanced Micro Devices Inc.'s launch of its 380MHz K6-2 P chip for notebooks.

At 380MHz, AMD's latest chip is faster than Intel Corp.'s fastest mobile chip, the 366MHz Pentium II. AMD, based here, also announced 366MHz and 350MHz K6-2 P microprocessors for portables.

At the same time, Houston-based Compaq Computer Corp. rolled out new notebooks based on the 380MHz and 350MHz K6-2 P chips, the Presario 1670, 1675 and 1270. Compaq is the second major notebook OEM, after Toshiba America Information Systems Inc., to use AMD chips in notebooks.

See Today's Related Stories
Intel vs. FTC Coverage

FTC reaches antitrust deal with Intel

By Dan Goodin and Sandeep Junnarkar

March 8, 1999
C/Net

Lawyers for Intel and the Federal Trade Commission have reached a tentative agreement to settle the government's antitrust case against the world's largest computer chipmaker.

The company and the FTC's filed a joint motion to delay start of the antitrust trial so that commissioners can vote on an 11-hour settlement the two parties reached over the weekend. The trial, which was to start tomorrow, is stayed indefinitely while the agency's four active commissioners consider the proposed settlement, which litigators on both sides signed yesterday.

 

Details of settlement talks emerging

By Michael Kanellos and Dan Goodin

March 8, 1999
C/Net

The witnesses in the FTC-Intel case were the last to know about the surprise settlement, details of which began to emerge this afternoon.

The terms have not yet been made public and lawyers on both sides would not comment on them. But one source familiar with the settlement said that in the general terms of the agreement, Intel will agree not to use access to its chips or product information as a lever to settle intellectual property claims. In other words, companies will be able to pursue legal actions against Intel without necessarily running the risk of finding itself with no chips.

 

Kinder, gentler Intel may have laid groundwork for settlement

By Lisa DiCarlo and John G. Spooner

March 8, 1999
PC Week Online

Intel Corp. could walk away from its antitrust case with the Federal Trade Commission relatively unscathed, thanks in large part to changes the chip maker has already made in the way it does business.

One day before their antitrust hearing was scheduled to start in Washington, Intel (Nasdaq:INTC) and the FTC announced Monday they had reached a settlement agreement that, if approved by FTC commissioners, would eliminate a large chunk of the FTC's case.

Neither side will discuss details of the proposed settlement until the commissioners approve it. A vote is expected within 10 days.

 

Trial was risky for both sides

By Dan Goodin and Michael Kanellos

March 8, 1999
C/Net

Although the FTC and Intel are calling today's surprise settlement proposal a "win-win" for both parties, observers say the situation was more of a "can't win" where the risks of losing for both parties outweighed the gains to be had in a face-saving settlement.

Both the FTC and Intel faced uphill battles in the legal action brought by the FTC that was supposed to begin tomorrow, say legalanalysts. and technical

To win, the FTC was going to have rely on untested legal arguments that have been criticized by experts. The agency was also faced with the specter of hanging a monopolist's label on a company that has lost market share in the past year.

 

Analysis: FTC case didn't pose major threat to Intel

By Jack Robertson

March 8, 1999
Semiconductor Business News

Intel Corp. had already had secured the right to continue its business practices without fear of most antitrust issues long before today's last-minute settlement the Federal Trade Commission's case against the microprocessor giant (see today's story).

The FTC had elected to pursue only the narrow issue of whether Intel was strong-arming other firms in industry to accede to patent cross-licensing agreements on its own terms. That meant other potential concerns were not pursued by the FTC in its case, including Intel's competitive pressure on rival microprocessor suppliers and the possibility that the Santa Clara, Calif., company could take advantage of de facto standards set in the PC arena.

 

Wintel's different ways

By Charles Cooper

March 8, 1999
ZD Net News

When it comes to taking on the federal government, the so-called Wintel partnership, usually joined at the hip in the PC market, offers a study in contrasts.

The take-no-prisoners corporate cultures at both Microsoft Corp. (Nasdaq:MSFT) and Intel Corp. (Nasdaq:INTC) are equally fierce but, at least in this instance, Intel has decided that pragmatism is more important than principle.

On Monday, Intel and the Federal Trade Commission agreed to settle antitrust charges against the chipmaker one day before the case was scheduled to go to trial. The deal, which is still not public, awaits approval by FTC commissioners, but one source close to the agency said the government got everything it wanted from Intel except a declaration that it's a monopoly. But even then, the source added, Intel came out a winner by splitting the difference.

 

Observers: Intel likely agreed to FTC limits

By Rebecca Sykes

March 8, 1999
InfoWorld Electric

Mum's the word on the details of the jointly filed proposed settlement between the U.S. Federal Trade Commission and Intel announced Monday, but observers said it is likely that Intel agreed to mild restrictions.

"The one thing [Intel] said was that they're happy with the settlement, so I would assume that the costs are fairly low," said Linley Gwennap, a senior analyst at MicroDesign Resources, in Sebastopol, Calif.

 

Both Sides Gain In Intel-FTC Antitrust Settlement

By Mary Mosquera

March 9, 1999
TechWeb

A proposed settlement between the Federal Trade Commission and Intel has some potential benefits for both sides, said a former FTC senior attorney Monday.

At the same time, the settlement boosted the stock of the giant chip maker, sparking a narrow Nasdaq rally. Intel [INTC] rose 3 5/8 to 118 1/4 in early-afternoon trading.

The proposed settlement between the FTC and Intel eliminates the need for the landmark antitrust trial, which was slated to start on Tuesday here in Washington, D.C.

 

Intel-FTC deal leaves Intergraph to square - $$$ needed?

By John Lettice

March 8, 1999
The Register

If Intel's settlement with the Federal Trading Commission stands, the chip giant still has one outstanding piece of business to deal with - Intergraph, and it could turn out to be a pricey business. Earlier today it was announced that Intel had struck a courtroom steps deal with the FTC, and provided that the terms (which are currently confidential) are approved, the company will have escaped from antitrust action by the US government.

ntergraph's own antitrust action is still pending, so the next move will be for Intel to square the company. But how? The solution will lie somewhere between what the FTC wanted from Intel, and what Intergraph wants. The FTC's preferred remedy calls for "relief sufficient to foreclose the possibility that Intel might again attempt to maintain its monopoly power by using exclusionary practices to compel others to grant intellectual property licences."

 

Focus of FTC case against Intel may shift

By George Leopold and Rick Boyd-Merritt

March 8, 1999
EE Times

The surprise decision by Federal Trade Commission attorneys to propose a settlement of its antitrust case against Intel Corp. still leaves open the possibility of the FTC pursuing a broader case against Intel that may include a look at the company's actions in the chip set market, industry sources said.

"There are remaining issues under investigation by the Commission," said William Baer, director of the FTC's Bureau of Competition, in announcing a proposed settlement today (March 8). Baer did not elaborate, but agency and industry sources have said the FTC was looking beyond the general-purpose microprocessor market to examine Intel's growing dominance of the chip set market.

 

Last-minute deal what you'd expect from Intel

By Dan Gillmor

March 8, 1999
San Jose Mercury News

INTEL Corp. is dominated by engineers who look at the data, argue vehemently about the options and then make a pragmatic choice. The company can act with cold brutality, especially with customers, but raw hubris is not among Intel's defining traits.

So it was entirely in character for the Santa Clara-based chip maker to settle an antitrust case with the Federal Trade Commission, rather than hold fast to a dubious, in-your-face principle of libertarian rights to do anything it pleased. The terms of the proposed settlement are murky for now, but it's not too early to make some educated guesses about why Intel and the commission staff made their 11th-hour deal.

 

FTC sets deal with Intel, notes `remaining issues'

March 8, 1999
SiliconValley.com

Microchip giant Intel Corp. reached a tentative agreement with federal regulators to settle claims that it illegally bullied rivals to maintain its dominance in the high-tech industry.

But the announcement Monday, on the eve of an antitrust hearing expected to last three months, came with a reminder from the Federal Trade Commission: A larger antitrust battle still looms.

``There are remaining issues under investigation by the commission,'' said William Baer, to antitrust investigator for the FTC. ``The commission's staff is committed to working expeditiously to resolve those concerns.''

 

Tech stocks rally on Intel settlement news

By Reuters

March 8, 1999
C/Net

Technology stocks powered ahead this morning on news that Intel had reached a major antitrust deal with the Federal Trade Commission.

The Dow industrials drifted in what traders said was a consolidating move after Friday's record run. The Dow this morning was off 7.64 points, or 0.08 percent, at 9,728.44. The tech-heavy Nasdaq was up 1.36 percent, or 31.9 points, at 2,369.01.

"I still think the market looks solid," said Barry Hyman, market strategist at Ehrenkrantz, King & Nussbaum.

 

Intel Climbs On FTC Settlement

By David Jastrow

March 8, 1999
Computer Reseller News

Intel shares climbed 5 points to 119 5/8 after the processor giant entered into a proposed antitrust settlement with the Federal Trade Commission.

The settlement appears to have avoided a lengthy legal battle for Intel and the possible negative impact of a lengthy public trial.

The Dow Jones Industrial Average lost 9 points Monday, The Nasdaq climbed more than 2 percent. The Dow closed at 9,727 after Friday's record-setting gain. Meanwhile, the Nasdaq jumped 60 points to 2,397.

 
Today's Related Stories

AMD's fab woes force 1Q loss, job cuts

By Mark Hachman

March 8, 1999
Electronic Buyers' News

Advanced Micro Devices preannounced a significant loss for the current quarter, exacerbated by a persistent manufacturing flaw that will force the company to lay off as many as 300 employees in an effort to cut costs.

Sunnyvale, Calif.-based AMD announced the moves Monday as part of a restructuring program that will be further detailed on April 6, when the company reports its first quarter earnings. Analysts and an AMD spokesman indicated that the lay offs were designed to continue lowering operating costs by streamlining product areas, with an emphasis on the company's microprocessors and communications devices.

 

AMD will cut 300 jobs to focus on processors

By Will Wade

March 8, 1999
Semiconductor Business News

Advanced Micro Devices Inc. here today announced it would eliminate 300 jobs over the next two quarters. AMD said it will take a charge against earnings in the current quarter to finance the restructuring program.

AMD said the cuts are aimed at increasing its focus on microprocessors and other ICs related to computers and communications. Although AMD has four main technological divisions, only its processor unit is seeing growth. Despite that, it's the K6-2 line that has held the company's profits down in the past few quarters, as manufacturing problems have hindered AMD's ability to produce the fastest K6-2 chips in high volume (see story in March 1 publication of SBN).

 

AMD predicts loss, cuts 300 Jobs

By James Niccolai

March 8, 1999
InfoWorld Electric

Advanced Micro Devices said Monday it expects to report a significant loss for its first fiscal quarter, and announced plans to lay off 300 workers as part of a restructuring program. The chip maker also said that microprocessor shipments for the current quarter will fall short of its goal of 5.5 million by about half a million.

This is the second time in a little more than four weeks that AMD has warned of an expected shortfall for the quarter.

The company has admitted to a manufacturing issue that it says harmed output in the first eight weeks of the quarter. It said today it is over the hurdle, but that the problem dragged down its output for the quarter. AMD has also been locked in a pricing battle with Intel that analysts say has been hurting AMD financially.

 

Bad news for AMD

By Lisa DiCarlo

March 8, 1999
PC Week Online

Despite snagging two top-tier customers this month, the bad financial news continues for Advanced Micro Devices Inc.

The Sunnyvale, Calif., company today said it would fall short of delivering its goal of 5.5 million K6 processors in the first quarter, resulting in a "significant loss for the current quarter," said Atiq Raza, co-chief operating officer and chief technical officer. At the same time, AMD (NYSE:AMD) said it would eliminate about 300 jobs as part of a restructuring program.

Speaking at a semiconductor conference, Raza said the company will ship "no more than 5 million" K6 processors. AMD successfully implemented performance-enhancing processes in the K6 chips but suffered a manufacturing setback during the first eight weeks of production, he said.

 

AMD's new mobile MPUs trade power for speed

By Mark Hachman

March 8, 1999
Electronic Buyers' News

Betting that OEMs will sacrifice low power consumption for a faster clock speed, Advanced Micro Devices Inc. is rolling out the latest version of its mobile K6-2 microprocessor.

“We've developed a new family of mobile microprocessors based upon a new trend in the marketplace,” said Dana Krelle, vice president of marketing for AMD, Sunnyvale, Calif. That trend, Krelle continued, relates to the notebook PC housing, or enclosure, which is being designed to accommodate increasingly powerful CPUs capable of burning 16 watts or more.

 
March 8, 1999

FTC reaches antitrust deal with Intel

By Sandeep Junnarkar

March 8, 1999
C/Net

A day before the Federal Trade Commission was to begin trying Intel in a major antitrust court battle, attorneys for both parties today submitted a joint motion to consider a proposed settlement.

Intel and the FTC filed motions with the commission's secretary withdrawing the FTC's case against Intel. The motion allows the commission time to consider a proposed settlement agreed to this weekend by the FTC's complaint counsel and Intel. Details of the agreement were not disclosed. The FTC's complaint was originally filed last June.

See Special Intel vs. FTC Coverage

Movement to halt Pentium III grows

By Stephanie Miles

March 5, 1999
C/Net

Consumer and privacy organizations are lining up to stop shipments of Intel's Pentium III processor until additional controls are in place to address the chip's controversial serial number feature.

Representatives of the American Civil Liberties Union, the National Consumers League, the Consumer Federation of America, Privacy Times, and the Center for Media Education signed a letter supporting the Center for Democracy and Technology in a complaint filed to the Federal Trade Commission. They are asking the government to stop shipments of Intel's Pentium III processor, which contains serial numbers ostensibly designed to aid in secure e-commerce transactions and help track computers in large corporations.

 

Intel pegs hopes on Pentium 3 in China

By Reuters

March 8, 1999
C/Net

Intel is betting China's rush to embrace the Internet will fuel demand for its new Pentium 3 microprocessors, company executives said today.

Personal computers with the Pentium 3 chip went on sale in China on February 26 as part of a global launch.

"We now have the Internet in mind with every product we design," Intel senior vice president Albert Yu told reporters at a demonstration for Chinese computer company executives.

 

Faster High-End Chip Due From Intel

By Tom Davey

March 8, 1999
Information Week

Graphical applications should see a big performance boost when Intel introduces a
faster chip for high-end servers and workstations on March 17. But the company has delayed until midyear a technology that would standardize eight-way servers.

The Pentium III Xeon chip will run at 550 MHz, up from the current Xeon's 450 MHz, and will be available with cache sizes of 512 Kbytes to 2 Mbytes. The chip will incorporate Intel's new set of multimedia instructions, which stand to greatly enhance workstation applications. Kinetix, a division of Autodesk Inc., for example, will demonstrate a 30% leap in rendering speed on its animation authoring software for film and video, says Jimmy Giliberti, senior director of product development at Kinetix. Many applications, particularly those residing on servers, will see more modest improvements.

 

Toshiba Helps AMD Further Penetrates Business Market

By Tom Davey

March 8, 1999
Information Week

Advanced Micro Devices Inc., the leading microprocessor maker for the sub-$1,000 consumer desktop market, continues to inch its way into business products. Later this month, Toshiba America Information Systems Inc. will ship an AMD- based notebook to U.S. business users. In January, Toshiba began shipping a notebook with an AMD CPU to the Japanese market.

Toshiba's Satellite 2540CDS will be aimed mainly at small to midsize businesses with up to 500 employees. At $1,699, the 2540CDS will have a 333-MHz K6-2 chip with AMD's 3DNow technology, 32 Mbytes of memory, a 4-Gbyte hard drive, a 13- inch display, and a 56-Kbps modem. Comparable notebooks with Intel chips start at $2,000.

 

x.86 has big future after Pentium III

By Mike Magee

March 8, 1999
The Register

A small consortium of chip architects have outlined their thoughts on the future of x.86 architecture post the Pentium III.

The architects, who have a site here, say there's life in the old dog yet.

According to the site: "The x86 architecture has longer time life than one can imagine just few years ago. Performance of the x86 microprocessor can be still dramatically improved through using new architecture approaches. We will study post Intel's Pentium-III development of x86 architecture."

See more stories in The Register Files
Intel vs. FTC Coverage

Tentative deal reached in U.S. antitrust case against Intel

By George Leopold

March 8, 1999
EE Times

Intel Corp. and the Federal Trade Commission announced a proposed settlement of their antitrust dispute early Monday (March 8), one day before a hearing was scheduled to begin.

The hearing has been halted indefinitely while the FTC's commissioners consider the proposed deal, which was worked out over the weekend.

"If approved by the Commission, the proposed settlement being recommended by [government lawyers] and Intel would resolve the allegations contained in the Commission's complaint issued on June 8," said William Baer, director of the FTC's Bureau of Competition. "There are remaining issues under investigation by the Commission. The Commission's staff is committed to working expeditiously to resolve those concerns."

 

FTC, Intel Reach Proposed Settlement

Associated Press

March 8, 1999
SiliconValley.com

Federal Trade Commission lawyers and Intel have reached a proposed settlement over government charges that the microchip giant illegally used bullying tactics to quell competition, an FTC spokeswoman said today.

FTC staff members and Intel jointly filed a motion with the commission that would withdraw the FTC's case against Intel, spokeswoman Michelle Muth said. She said she could not discuss details of the settlement -- which must now be considered for approval by the commission -- or even if the settlement would end all ongoing government litigation with the company.

 

Trial Preview: FTC case against Intel raises IP issue

By Mark Hachman and Jack Robertson

March 5, 1999
Electronic Buyers' News

The Federal Trade Commission next week will open its case against Intel Corp. for engaging in allegedly anti-competitive business practices. But as the gavel drops in Washington, it's the role of intellectual property in the market that may be placed on trial.

The hearing, which is expected to last two to three months, is unlikely to strike at Intel's core in quite the same manner as the Justice Department's ongoing suit against Microsoft Corp. Narrower in focus, this case will instead home in on specific instances in which Intel customers claim their competitive position was compromised by the chip giant.

 

Opinion: “The Matter of Intel Corp.”

By Jack Robertson

March 5, 1999
Electronic Buyers' News

This is no Teddy Roosevelt trust-busting case. The FTC docket “In the Matter of Intel Corp.” is an intellectual-property spat.

It won't break up Intel. It won't recast Pentium, Merced, or any of the myriad code-named upcoming processors and chipsets. At most, the end result will be an order affecting the way Intel negotiates its cross-licensing agreements or how it provides early development data and samples of next-generation chips.

 

Intel's turn to face inquiry
Antitrust: Chip giant's case is more relevant than that of Microsoft.

By Tom Quinlan

March 8, 1999
San Jose Mercury News

After nine months in the shadow of the Microsoft Corp. legal extravaganza, the antitrust case against Intel Corp. is stepping into the spotlight, in a proceeding that may have more day-to-day impact on the high-tech industry than its infamous predecessor.

On Tuesday, an administrative law judge for the Federal Trade Commission will begin hearing charges that Intel illegally leveraged its monopoly power to force three computer companies to surrender their technology. The case is narrow and promises few courtroom theatrics; if the Microsoft antitrust trial were not on a six-week hiatus, the Intel hearing might command little attention.

 

U.S., Intel agree to narrow antitrust case

By George Leopold

March 5, 1999
EE Times

With the antitrust case against Intel Corp. set to open next Tuesday (March 9), EE Times has learned that U.S. and Intel attorneys agreed as early as last August to narrowly focus the Federal Trade Commission's case on general-purpose microprocessors, excluding key areas of concern like graphics controllers and chip sets.

The move to limit the scope of the case was reaffirmed this week when Administrative Law Judge James Timony, acting on his own initiative, excluded evidence presented by the government concerning alleged anticompetitive conduct by Intel in the chip-set market. Timony's ruling in Intel's favor cited the FTC's "promise" that it "will not undertake in this case to prove or offer any evidence of the existence of any adverse competitive effects in any market for graphic controller or chip set devices, or on the development of graphics controller or chip set technology."

 

Trial may have profound consequences

By Dan Goodin

March 8, 1999
C/Net

The Federal Trade Commission's antitrust trial against Intel, which opens tomorrow in Washington, may have profound consequences for the technology industry, even if it lacks the drama of the other high-tech legal battle being waged in the nation's capital.

Just blocks from the courthouse where Microsoft has fought the Justice Department and 19 states for the past four months, Intel attorneys will square off against the FTC in a trial that could set new rules for monopolists and lower the burden of proof in competition cases.

 

Hot competition may aid Intel in court

By John G. Spooner and Carmen Nobel

March 5, 1999
PC Week Online

When Intel Corp. walks into its hearing with the U.S. Federal Trade Commission on March 9, it will do so with a lot more ammunition than originally anticipated.

At the core of the FTC's antitrust case against the semiconductor maker is the government's premise that Intel has adversely affected competition in the market for "general-purpose" microprocessors.

Since the FTC filed its charges last June, however, competition in the processor market has heated up considerably, with more PC makers turning to Advanced Micro Devices Inc. for chips for consumer and low-end business PCs.

 

Antitrust Trial Opens Against Intel Turbulence

By Mary Mosquera

March 5, 1999
TechWeb

It's a hectic and volatile time for Intel and there is no sign things will get calmer as the Federal Trade Commission prepares to take the chip maker to court Tuesday for antitrust violations.

In the last month alone, the company made a huge acquisition, lost two executives in a tragic slaying, rolled out its next-generation Pentium processor, and saw its lead in the chip market slip.

 
The Register Files

Hard core multiple Cyrix chips found in cyberspace

By Mike Magee

March 8, 1999
The Register

Once again, Japanese Web sites seem to have pix of chips that few, if any of us, have seen in the West.

This is the unofficial announcement of Cyrix 366/100 parts with new packaging. NatSemi obviously does things differently in the East, because its own Web site in Japanese has the details. (URL below).

Between this morning and now, more pix giving intriguing details have appeared on the Web.

 

Intel UK compares PIII serial number to car licence plate

By Mike Magee

March 8, 1999
The Register

The oldest UK newspaper, The Observer, published only on Sundays, today quoted an unnamed Intel UK spokesperson as saying: "You have to put licence plates on your car if you want to drive, this development is the electronic extension of that."

He or she was driven to say so because a reporter from The Observer was asking
about the significance of the "unique" serial number contained in Pentium IIIs (Katmais).

 

IA-64 Architecture Innovations

By Mike Magee

March 7, 1999
The Register

This is a presentation jointly given by John Crawford, Architect & Intel Fellow at Intel, and Jerry Huck, leading architect at Hewlett Packard at the Intel Developer Forum.

Because it is a long presentation, each of the files IA64-1.JPG to IA64-18.JPG contains three slides each.

You can see photographs of the Merced package here, while our full coverage of the Intel Developer Forum is is here.

 

Merced Solutions Overview

By Mike Magee

March 6, 1999
The Register

As well as keynote speeches and breakouts at the IDF, Intel also holds a series of
tracks on different topics. The first Merced track was presented by Hemant Dhulla, IA-64 Programme Manager at Intel US. Here are the slides for his presentation.

For our exclusive photographs of the Merced cartridge, go here.

The next presentation we will post is titled Intel architecture innovations, made jointly by Intel and HP execs.

 

AMD to demo K7 at CeBIT at 600MHz

By Mike Magee

March 76, 1999
The Register

Various hardware sites are reporting that AMD will demonstrate a K7 chip running at 600MHz at the CeBIT trade fair in Hannover in two weeks time.

According to AMD Zone, engineers at AMD have also succeeded in manufacturing K7 samples which clock at 650MHz.

The reports suggest that AMD will show the K7 clocking 600MHz but do not need Kryotech technology to achieve these speeds.

 

Intel case called off -- as predicted here

By Mike Magee

March 8, 1999
The Register

The case between US .gov and Intel has fallen over, as first predicted here.

As revealed here earlier, Intel would never go through with the public humiliation of a court trial.

On the 22nd of February, The Register had information to this effect. (Story: Intel to surrender to higher US authorities)

 
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