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Intel says Via bigger threat than AMD

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Intel Developer Forum Senior Intel VP Pat Gelsinger said at a round table meeting today that the company saw Via as a bigger threat than AMD. In a pre-eve briefing before his keynote speech at the Intel Developer Forum (IDF) tomorrow morning, Gelsinger said there were several factors which made the company paranoid about Via. He said: "We're concerned about competition. Are we paranoid about competition from Asia? Yes, we are. We're seeing more and more first class silicon from Taiwan. Furthermore, they've got cheap capital. We are paranoid about Taiwan and we expect them to be very competitive, more so than AMD. They're a very potent force and we take them seriously." Gelsinger said that Intel would respond to AMD's introduction of the Athlon K7 in the same way as it had done for the last 20 years. Intel, he said, would respond with superior branding, superior technology and better execution. "We've a roadmap to do that," he said. "We're about to launch .18 micron technology, and the Pentium III has done better than we expected. Our volume has never been better than it is now. That's how we're going to respond." He claimed that AMD introduced formidable challenges, including the move from slot technology to different packaging, the introduction of copper technology and the deployment of new fabrication plants. He would not respond to charges that Intel had used its pricing model to aggressive effect, other than to re-iterate what he said early. He said that shortages for BX/ZX chipsets were because demand was greater than Intel expected, and the company was taking steps to increase the number of wafers and fix the problem. The problem, he said, was short term. Gelsinger said in a teaser for his keynote tomorrow that he would outline the concept of the e-home as a place with a multitude of x86-based appliances and machines in every room. ® Full IDF Summer 99 coverage

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