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Intel withdraws boxed Xeons, admits 933MHz CuMine problems

Intel boxes dealers, disties' ears: supply ultra-tight

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Just as love goes with marriage [seen the divorce figures - Ed?], and the Moon is a balloon, so Intel's long suffering distributor and dealer channel get the thin end of the wedge when supplies of CuMines and Celerwhines are being doled out - as this internal document leaked to us by an Intel employee - proves.

The highlights? Refunds on boxed Xeons because of lack of motherboard support, 933MHz has thermal problems which may take until the end of June to solve, supply is tight. And for tight, read tight. Originally, Intel was talking Q3 for good supplies but that now extends to the whole of the second half of this year. Nevertheless, for the dealers, there's jam tomorrow as AMD introduces it's T'Bird Athlons...

Intel Boxed Processor Availability Update

May 24, 2000

Intel Confidential Information Disclosed under Non Disclosure Agreement

This is a notice to inform you of the current availability outlook for the Intel boxed processors sold through authorized distribution channels. This outlook statement is based on current expectations - it is forward looking and actual results may differ. We recommend that system integrators contact their authorized distributors for specific availability and pricing information.

Intel Processor Supply Summary

As outlined in previous updates, Intel exited Q4'99 with lean inventory levels driven by stronger than expected demand. This strong demand continued into Q1'00, causing Intel to exit the quarter with lean inventories. As a result of the stronger than expected demand and lean inventory levels, processor supply is tight.

Intel expects that both Pentium lll and Celeron™ processor supply will remain tight through the remainder of Q2'00. This is not a product or process health issue. The overall ramp on 0.18-micron technology continues to be the fastest ever. Intel is making extraordinary efforts to ramp production as quickly as possible. Intel expects the majority of 0.18-micron technology (prior code name: Coppermine) Pentium III shipments to the distribution channel to be in core speeds of 700MHz and higher as Intel continues to transition to higher performance levels.

Intel's production priority will continue to be Pentium III processors. We suggest that system integrators align their product offerings accordingly. Intel is positioning itself to meet strong growth in 2H'00.

For more specific information about availability of Intel processors for the distribution channel see below:

Intel Pentium III Processor Transition to Flip Chip-PGA Package

Intel is transitioning the Pentium lll processor line from SECC2 to FC-PGA packaging. Intel expects that about 1/2 of the Pentium III processors shipped to authorized distributors in Q2'00 will be in the FC-PGA package. This is expected to increase to about 75% in Q3'00. Customers who have not already done so, should transition their Pentium III processor-based desktop system offerings to the new FC-PGA form factor now. Pentium III processors in FC-PGA package are based on 0.18-micron process technology.

Intel is now shipping CA810E desktop boards to support Pentium III processors in FC-PGA package and is planning additional board offerings. Other motherboard vendors are also shipping socketed boards that support Pentium III processors in the FC-PGA package based on 810E, 440BX and 3rd party chipsets. For more information about boards and slot-to-socket adapters go to the Technical Center on program.intel.com

Intel is planing to build limited quantities of Pentium III processors in the SECC2 package in the second half of 2000. These SECC2 builds will be concentrated on higher core speeds to support Server and Workstation designs until they are compatible with the FC-PGA form factor.

Intel Pentium III Processors Based on .25-micron Technology

Intel will continue to ship Pentium III processors based on 0.25-micron technology (prior code name: Katmai) into the distribution channel during May, June and July '00. Most of this supply will ship as 550MHz and 500MHz core speeds with 100MHz system bus. These processors are packaged in the SECC2 package. This product will be priced to enable attractive system price points. This is meant to ease the transition to the FC-PGA form factor and to aid in reducing distribution channel inventory on older technology boards.

Intel Pentium III Processor 1GHz

On March 8, 2000 Intel announced the introduction of the Intel Pentium III processor 1GHz. Broader quantities of Pentium III processors 1GHz will be available in the Q3'00 time frame. Shipment of Boxed Intel Pentium III processors 1GHz are expected to begin at that time.

Intel Pentium III Processor 933MHz

On May 24, 2000 Intel introduced the Intel Pentium III processor 933MHz. This processor is built using advanced Intel 0.18-micron process technology that enables faster processor speeds, new performance enhancing features and lower power consumption. Pending completion and validation of a new thermal solution, the boxed version of this processor is expected to begin shipping in late June. Boxed processors ship with a high quality thermal solution in the box.

Boxed Intel Pentium III Xeon™ Processor

As previously indicated, Intel has decided to temporarily suspend shipments of Boxed Intel Pentium III Xeon™ processors 933, 866, 800, 733, 667, 600MHz with 256KB on-die L2 cache (prior code name: Cascades) to Intel Authorized Distributors. This notice does not impact shipments of Boxed Intel Pentium III Xeon processors 550 MHz with 512kKB, 1MB or 2MB L2 cache or any other Intel Boxed Processors. This suspension is in response to delays in the availability of motherboards that support these processors in the distribution channel. Intel is working with board manufacturers to assist them in getting their designs to market as soon as possible. Intel plans to resume shipments of these boxed processors when board designs that support these processors are available in the distribution channel. Please contact your Intel Authorized Distributor if you have demand for these products requiring support. Customers who have inventory of these processors and would like to arrange for returns, should contact their place of purchase.

If you are unable to arrange for credit from your place of purchase, please contact Intel Customer Support. This notice is based on information currently available to us. Please check here for any future updates.

Intel Celeron™ Processors

Supply of Intel Celeron™ processors is expected to remain tight in Q2'00 due to strong demand.

Boxed Mobile Intel Processors

Intel is currently shipping boxed mobile Intel Pentium lll processors 700, 650, 600, 500 and 450MHz into the distribution channel. The boxed mobile Pentium III processor is the first mobile processor offered by Intel specifically for system integrators. The boxed mobile processor program is focused on enabling system integrators to deliver performance notebooks to their customers by using boxed Intel Pentium III processors and build to order systems. In addition to shipping boxed mobile processors into the distribution channel, Intel is also working with leading system vendors to enable to enable the channel with build to order notebook systems.

For more information about boxed mobile Pentium III processors and build to order mobile systems, please see http://program.intel.com/ibp/products/processors/mobile/pentiumiii/.

Intel expects to expand the program to include boxed mobile Intel Celeron™ processors in the future. The exact date has not been determined. Please check here for any future updates.

Thank you for your support of the Intel Boxed Product Program.

With our best regards.

Intel

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