SUNNYVALE, Calif. -- Hit hard by the current IC downturn and competitive pressures from Intel Corp., Advanced Micro Devices Inc. here claims it has a new "secret weapon" to regain its momentum in the market: its upcoming 0.13-micron microprocessor lines.
By year's end, AMD hopes to ship its initial 0.13-micron microprocessors for the mobile, desktop, and server markets. The 0.13-micron chips, equipped with copper-interconnects and other advanced features, are being made at its Fab 30 plant in Dresden, Germany.
According to AMD's roadmap, the company will develop two 0.13-micron processor lines, codenamed "Appaloosa" and "Thoroughbred." The "Appaloosa" processors are designed for low-end PCs and mobile products, while "Thoroughbred" is geared for desktops and servers, according to AMD. The chips are expected to ship in volumes in the first half of 2002, the company said.
AMD's 0.13-micron process will enable the company to shrink its existing 0.18-micron Athlon line of processors, thereby providing a cost advantage over products from its rival--Intel, said W. J. Sanders III, chairman and chief executive of AMD, during a conference call with analysts on Wednesday.
AMD's 0.13-micron process will enable the company to develop chips that are "80-square-milimeters" in die size--which is smaller than Intel's code-named "Northwood" processors, Sanders claimed. Intel's "Northwood" product is a 0.13-micron version of the Pentium 4 processor line, it was noted.
"We think the 0.13-micron process is our secret weapon," Sanders said. "This will allow our customers to compete against the 'Dell model,' " he said.
The flamboyant AMD executive was referring to Dell Computer Corp., which utilizes the "Intel Inside" strategy for its computer business. For the most part, Dell uses Intel's microprocessors and PC motherboards in its systems, according to analysts.
AMD is scrambling to develop its 0.13-micron processor for other reasons. In recent times, the company has been pounded by the IC downturn and competitive pressures from Intel.
On Wednesday, AMD reported third quarter net sales of $765,870,000, a decline of 22% compared with sales of $985,264,000 in the second quarter of 2001. AMD reported sales of $1.2 billion in the third quarter of 2000.
The total net loss for the third quarter of 2001 was $186,929,000. In the second quarter of 2001, AMD reported net income of $17,352,000 (see Oct. 17 story ).
But Intel is not standing still, especially in 0.13-micron technology. Gearing up its 0.13-micron process for its new Pentium 4 microprocessor lines, the company on Wednesday announced plans to more than double the production of this technology over the next 18 months.
The move would expand Intel's 0.13-micron chip production to a staggering total of six wafer fabs by 2003 or sooner (see Oct. 17 story ).
