Intel Alters Plans for New Chip for 2007

Facing strong competition from rival Advanced Micro Devices Inc., chip maker Intel Corp. on Monday modified its plans for upcoming server microprocessors, starting in 2007.

Intel said it had canceled a Xeon processor that was scheduled to be released in 2007 and would replace it with another that improves communication with other chips in the system. The new chip, code-named Tigerton, is set to be released in 2007.

“We have the opportunity to deliver better performance in 2007,” said Intel spokeswoman Erica Fields. “Therefore, we are canceling a product and replacing it with something else.”

The change comes as Intel is being pressured by AMD’s server processors that incorporate more efficient chip-to-chip communication. AMD has seen its share of the server market grow as its chips have generally outperformed Intel’s offerings.

Fields declined to provide specifics on the new dedicated, high-speed “interconnect” that will be part of Tigerton or describe how it differs from what’s being offered by AMD’s Opteron processor.

Intel also announced that it was delaying the high-volume release of an update to its Itanium chip for high-end servers. That chip, code-named Montecito, will be shipped in volume in the middle of next year rather than early 2006, Fields said.

Itanium was developed over a decade by Intel and Hewlett-Packard Co., but its sales have never matched expectations. Both companies, however, have remained committed to it.

The Montecito update will be the first Itanium to incorporate two computer engines on a single core. The company said it expected the chip would offer two times the performance of today’s Itanium 2 processors.

“In order for us to deliver the highest-quality production parts, we need some additional time,” Fields said.