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AMD unveils faster server chips

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CIOL Bureau
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SANFRANCISCO: Advanced Micro Devices Inc., the No. 2 maker of PC processors, on Sunday unveiled faster chips for server computers, saying they would extend its performance lead over bigger rival Intel Corp.

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The new models in AMD's Opteron family of server chips would be anywhere from 4 to 15 percent faster than its current offerings, and would deliver that increased speed without consuming more power, the company said.

The chips will go on sale in April. The new 885 chip will cost $2,149 each in batches of 1,000, the same price as its most expensive existing processor, the 875 HE.

The new 285 chip will cost $1,051 apiece. AMD did not say what the new 185 chips would cost and does not publish prices for its 100-series chip.

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AMD's announcement of the new chips comes a day before Intel is set to highlight its own upcoming products, particularly server chips, at its twice-annual developers' forum that kicks off on Tuesday.

"We've got a really good product out there today that is going to cause them (Intel) heartbreak even for their future products," Brent Kerby, AMD's marketing manager for Opteron.

"This further extends our lead in contrast to where they are today," Kerby said.

AMD, long second fiddle to Intel, has gained market share in recent years, especially in servers, led by its chips that have two processing cores, a design that combines fast performance with low power consumption.

On Friday, Intel warned that revenue for its current quarter would be below its earlier expectations, in part because of further market share losses.

While analysts said the revenue weakness appeared to be specific to Intel, shares in AMD were hit harder, falling 4.4 percent to close at $39.51 on Friday.

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