Intel triumphant over server partnership

Intel has knocked out rival chipmaker Transmeta in a bid to win a server partnership with server specialists Amphus.

Amphus chose Intel for its high-density server design called Virgo, which is based on Intel's low-power Pentium III-M chips.

However, Intel was not touted to win the partnership due to Transmeta's Crusoe processor, which Amphus had planned to adopt.

Henry Fung, chief executive at Amphus, said in a statement that the company believes: "Intel's low-voltage processors deliver the best balance of performance and power consumption today".

There has been increasing interest in the high-density server market because it allows data centers to pack more servers into much less space than traditional servers.

The new type of servers are often based on low-power laptop processors such as Pentium III-M or Crusoe chips to decrease heat output and power consumption. Traditional servers are currently a huge problem in California with its re-occurring blackouts.

Intel and Amphus will jointly promote the new server designs to ODMs and OEMs, who will be able to begin production of Virgo-based products by the fourth quarter.