Intel Prepping Release Of i820 Chipset

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November 12, 1999 (3:56 PM EST)

When Intel releases its long-awaited, much-delayed i820 chipset Monday, it will have the support of several PC-makers who are planning to use the technology in their newest PCs. Intel will also be deflecting questions raised today by a Wall Street analyst who questioned the company's IA-64 strategy and said its i820 plan is in "disarray."

IBM, Hewlett-Packard, and Compaq are planning full support of the i820 chipset. Sources say that Compaq on Monday will unveil four new additions to its DeskPro line that incorporate the i820 chipset. Prices will start at about $2,500 for configurations based on a 600-MHz Pentium III Coppermine chip, with 128 Mbytes of RDRAM and a 13.5-Gbyte hard drive. At the same time, IBM will add the i820 chipset as an option for its PC 300PL desktops and Intellistation E Pro workstations. Meanwhile, HP will unveil new versions of its Vectra PCs and Kayak workstations that incorporate the new chipset.

But Merrill Lynch analyst Joe Osha said price-performance issues may impact the chipset's acceptance. "It's not that there is a problem with the 820 chipset itself, it's that the memory roadmap is in disarray," Osha said in an interview. The i820 chipset utilizes new 133-MHz RDRAM memory from Rambus, which will sell for up to 40% more than PC 100 SDRAM, according to some estimates. Osha says he thinks this may not sit well with price-conscious PC buyers in both the corporate and consumer sectors. "Given the relative performance difference, the cost that RDRAM is imposing on vendors makes it unlikely that Rambus is going to end up being a solution for the majority of the market," Osha said.

As for Intel's forthcoming 64-bit Merced chip, Osha said, "It's not going to be a failure, but it's not going to be a home run either. In terms of IA-64 being better than anything anybody's ever seen within the enterprise, that's not going to happen."

Osha made similar remarks in a report released early today. After the report's release, Intel's stock slid. By late afternoon, its stock price was down 3-5/8 to 75-13/16 per share.

Intel declined to respond to Osha's comments. Company spokesman Bill Kircos says, "We don't respond to comments from a single analyst."

Intel first gave word early last month that the i820 chipset, which facilitates bus speeds of 133 MHz and thus allows computers to take full advantage of Coppermine chips, would be delayed because of a conflict with RDRAM that the company says has now been resolved. The i820 chipset was originally scheduled to ship to PC makers in October. Several PC makers, including IBM and Micron, have been shipping 133-MHz FSB systems using an alternate chipset from Via. However, Intel is suing Via in federal court in San Jose, Calif., for patent infringement.