AMD to Launch ‘Value’ PC Chip
Computer chip maker Advanced Micro Devices Inc. plans to launch today an entry-level microprocessor for personal computers to compete with the Celeron chip from industry giant Intel Corp., which dominates the PC chip market.
The Sempron processor sets in motion AMD’s strategy to move to a two-product lineup for PC chips. Sempron will cover the “value” end of the business, and the 10-month-old Athlon 64 chip will target the high end.
“This move will allow them to sell low-priced processors side by side with premium processors, and give buyers a clear expectation of what it is they’re buying,” said Nathan Brookwood, principal analyst with Insight 64, a technology consulting firm in Saratoga, Calif. “It’s a gap that needed to be filled.”
Intel had 82.9% of the global PC microprocessor market last year, according to Mercury Research, a consulting firm in Cave Creek, Ariz.
Intel divides its products between its mainstream Pentium 4 chip and its entry-level Celeron chip for less-expensive computers that don’t need to handle heavy-duty computing and video rendering.
Sunnyvale, Calif.-based AMD had 15.4% of the worldwide market in 2003 and has been gaining ground with Athlon 64, the first 64-bit chip for desktop computers running Microsoft Corp.’s Windows operating system.
With its ability to process data twice as fast as standard 32-bit chips, it was designed for PC users who download music, watch videos, play computer games and create digital media content.
Sempron, on the other hand, “fulfills the needs in the marketplace where people are doing spreadsheets, word processing and Web browsing,” said Kurt Holman, an AMD marketing manager.
AMD claims the Sempron chip outperforms equivalent Celeron chips by 7.9%, according to industry benchmarks that test speed and other factors in handling Internet connections, word processing and spreadsheets.
Intel spokeswoman Laura Anderson declined to comment directly on Sempron, saying only, “We’ve been offering products for the value computing segment since 1998, and we’ve had good success with them.”
Sempron chips will debut today in PCs made by China’s Lenovo Group Ltd., Holman said. In the next several weeks, Hewlett-Packard Co., Acer Inc., Sharp Corp. and other manufacturers will roll out Sempron-based PCs as well, he said.
