AMD prepares assault on 2GHz Intel

AMD is bringing forward the launch of its 2GHz-plus processors in a bid to keep pace with archrival Intel.

According to sources familiar with AMD's plans, the chipmaker will introduce the Athlon XP 2400+ and the Athlon XP 2600+ for desktop PCs towards the end of the month and is also evaluating whether to increase the speed of the chip's front-side bus - the pathway used to shuttle data between the processor and PC memory.

Doing so would boost the performance of future Athlon-based PCs

The newest Athlon XPs will help AMD increase its competitiveness with Intel's Pentium 4. The Pentium 4 currently tops out at 2.53GHz, while AMD's highest performance Athlon XP is a 2200+ model, which runs at 1.8GHz.

To get there, AMD moved up the launch of the 2600+ chip, which was not expected until the fourth quarter, to this month. The move helps AMD combat Intel's imminent 2.8GHz Pentium 4 launch. Intel moved the chip forward to this month from the fourth quarter to help stimulate demand, analysts said.

Both companies are expected to cut chip prices as the new chips become available.

AMD upping the ante recalls the two chipmakers' race to 1GHz in early 2000, analysts said. AMD won that horse race, but right now the Pentium 4 gives Intel the upper hand, analysts said.

Dean McCarron, analyst with Mercury Research said: "It's no secret that Intel doesn't care much for AMD. That move increased Intel's strength against AMD at a time when AMD was more vulnerable than usual ... due to its loss of market share and the (PC market) inventory problems of the second quarter."

AMD share of the PC processor market dropped 2.6 per cent to 15.6 per cent during the second quarter, while Hewlett-Packard, its main customer, struggled with excess inventory of consumer PCs.

AMD will battle back, however. Its new schedule calls for an Athlon XP 2800+ chip later in the year, sources said.

John G. Spooner writes for News.com