Intel Delays Release of Next-Generation Chip : Technology: The P5 will come out in the first quarter of 1993, giving the firm time to perfect it and ensure enough supply.

Seeking to balance a series of delicate technical and marketing issues, Intel Corp. said Wednesday that it will delay the introduction of its next-generation computer-on-a-chip a few months.

Intel said the delay, from this year’s fourth quarter to next year’s first, will allow it to improve the manufacturing process for the chip and prevent shortages when it reaches the market.

Code-named the P5--but often referred to outside the company as the 586--the chip will power a new generation of desktop computers that have the performance of an expensive engineering workstation yet remain compatible with the IBM PC standard.

Dana Krelle, marketing director of Intel’s microprocessor group, said test versions of the P5 were working well. But he said the company did not want to undermine sales of its current high-end chip, the 486, by encouraging customers to wait for P5 machines--or by diverting valuable 486 production capacity to the P5.

At the same time, Intel is eager to keep the P5 in the public eye in order to prevent PC manufacturers and software developers from defecting to rival microprocessors such as Sun’s Sparc, Silicon Graphics’ R4000, IBM’s RS-6000 and Hewlett-Packard’s PA-RISC.

Intel said the delay will also give it more time to test the P5 to ensure that it is free of glitches. A bug found in the 486 as Intel began to accelerate production a few years ago became an embarrassment.

By improving the production process, Intel will be able to make more of the chips available initially than it usually can when it launches a new model, said Paul Otellini, vice president of Intel’s microprocessor group.

A shortage of the 386 chip, the 486’s predecessor, after its 1985 introduction caused Intel to ration the supply, which harmed the firm’s relations with PC makers that felt they were slighted. Intel also took a long time to accelerate production of the 486.

Though the P5 is commonly referred to as the 586, Intel has said it is considering giving it a different name.

Industry analysts said the P5 delay should have little impact on Intel’s earnings or revenue since the greater-than-expected demand for 486s will take up the slack.