Intel denied to give up low-end chipset said only to adjust the product line

Cross Intel spokesman Bill (Bill Kircos) recently denied that the company will exit the low-end chipsets market rumors. But he also said that due to the constraints of production capacity, Intel will give priority to the production of certain types of chipsets. Earlier reports said that Intel plans to gradually stop production in the fourth quarter of this year, 865 and 915PL/GL chipset, and decided to withdraw from the entry-level chipset market.

Cross did not announce chipsets which models will be affected by the adjustment, but according to sources, most likely will be affected by the low end chip group. In fact, as early as a month ago, Intel chief financial officer Bryant - (Andy Bryant) has made it clear that the second half of this year, Intel's chipset capacity may not meet the supply needs. According to data released by market research firm IDC and Gartner, global PC sales far exceeded expectations this year. Although the second quarter is the traditional PC sales off-season, but Intel's factory is still running at full capacity. Cross said that Intel will fulfill the previously signed contract with the PC manufacturers supply, but can not meet the market demand than expected. With the promotion of the concept of the platform, chipset plays a more and more important role in Intel's development strategy. For example, Intel Centrino platform collection flagship product is the Pentium M processor, chipset and wireless module. Cross said, due to capacity constraints, Intel must adjust the production line to meet customer needs, and is currently the most Centrino market demand strong product.

But Cross also said that Intel's goal is still the entire chipset market. By the end of this year, Intel is located in Arizona, the plant will complete the upgrade, so Intel will get more capacity. In addition, Intel plans to build a new factory in Ireland next year. Despite their lack of capacity, but Intel is not from TSMC, UMC and other chip makers to obtain additional capacity plan.