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Intel Halts Chip Shipments

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Bloomberg News

Intel Corp., the world’s biggest computer chip maker, said it has stopped shipping its fastest Pentium III processors because the chips have a flaw under some conditions. Intel began shipping the 1.13-gigahertz Pentium III on July 31 in limited capacity. The chips sent out so far will be recalled, spokesman Mike Sullivan said. That recall won’t affect Intel’s earnings, he said. Some software used to test the performance of computers doesn’t run properly on desktop machines using the Intel processors at certain frequencies at certain temperatures. Intel discovered the malfunction in a circuit on the chip over the weekend and is working on it. Intel shares rose 94 cents to close at $73.88 on Nasdaq.

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