Bug in New Chip Set Could Prompt Intel to Scrap Motherboards

A glitch in a forthcoming chip set from Intel Corp. could lead to a delay in the adoption of a new type of high-speed memory and cause millions of dollars’ worth of motherboards to be scrapped, according to a leading analyst.

Word of the bug led to a beating for shares of Intel and Rambus Inc., the company that licenses the new technology to memory makers. Peter Glaskowsky, analyst at MicroDesign Resources, told Bridge News that the problem is with the electrical interface to the Rambus-based memory, as this prevents the use of a motherboard with three memory slots--a configuration many computer makers have used.

“During the testing of the machines, they discovered they were not reliable,” he said. Glaskowsky said that Intel and the computer makers have decided to withdraw those machines from production and rework the units with bug-free motherboards. Intel shares fell $1.83, or 2.4%, to $75.67, while shares of Mountain View, Calif.-based Rambus plunged $16.38, or 18.71%, to $71.13. Both stocks trade on Nasdaq.

An Intel spokesman refused to comment, reiterating the company’s statement that the 820 chip set will ship this month.