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2nd Flaw Found in Intel’s New Xeon Chip

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<i> Bloomberg News</i>

Intel Corp. said some new computers incorporating its new high-powered Xeon processor may be delayed for a week to 10 days because of a flaw in the chip. The flaw, caught before any computers were shipped, is the second to cause problems for Xeon, which Intel unveiled at the end of June. The latest bug is a problem only in powerful servers that control computer networks, which use Xeon’s “error-correcting code” to ensure proper data processing. Though minor, the flaw is a setback for Intel as the Santa Clara-based company works to prove it can make chips to run machines that are more complex than personal computers, a market it dominates. Intel said it will solve the problem by screening the new chips more thoroughly. Those with error-correcting code that pass the new tests will be sold for use in servers. Those machines should be out in late July. Intel shares rose 19 cents to close at $82.56 on Nasdaq.

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