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Sun set to unveil it next generation of chips

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CIOL Bureau
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NEW YORK: Sun Microsystems Inc. on Wednesday will unveil a long-awaited verssion of its crown jewels, a faster computer chip that functions as the core of its workstations and computers that serve up Web pages. The Palo Alto, Ca.-based company said its new UltraSPARC III would be introduced in New York on Wednesday, along with a new Sun Blade 1000 workstation and a new Sun Fire 280 R server running the new chip.



Sun, the top maker of servers, which are the machines that power the Web and other networks, said it will also outline a plan for other computers in its line to ship with the new chips within a year. The new microprocessors are expected to form the basis for subsequent advances in its principal computer lines for the next several years. Sun develops its own line of custom microprocessors rather than relying on chips from Intel Corp., as many PC makers do.



Sun executives said the new 29-million-transistor central processing unit (CPU) would initially double the speed machines run computer programmes compared with its 6-million-transistor UltraSPARC II. The new chip line promises to boost Sun computer performance by up to five times in subsequent products, it said.



Sun needs to refresh its line of servers to keep rivals such as Hewlett-Packard Co. and International Business Machines Corp. at bay. Even personal computer makers such as Dell Computer Corp. and Compaq Computer Corp. are building lines of servers to challenge Sun.



"We continue to gain major share on our competitors, and this is the next wave from Sun that will maintain and extend that leadership," said John Shoemaker, executive vice president systems product group.



However, analysts and Sun rivals pointed out that, while it was a milestone that the new processor is now ready, that the real impact of the marketplace would not come until Sun delivers key servers, such as its E10000 line, with the UltraSPARC III.



"I don't think anybody will jump up and down about this, and the stock is not going to take off to the moon tomorrow," said Richard Chu, an analyst with SG Cowen. "But the fact UltraSPARC III is here, and they are shipping the server and workstation is a milestone."



Shoemaker acknowledged there had been some delays in bringing the product to market, but said these were necessary to ensure they were reliable, and said they were not out of line with delays throughout the chipmaking sector.

(C) Reuters Limited 2000.

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