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AMD updates Opteron server chips

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CIOL Bureau
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SAN FRANCISCO: Advanced Micro Devices Inc. unveiled updated versions of its processors for business computers on Tuesday, hoping it will keep grabbing market share from revitalized rival Intel Corp.

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AMD also said it was on track to launch its first chip with four processing cores -- meaning it will be able to handle several computing tasks simultaneously -- by the middle of next year. Its current chips have two cores.

Changes to the new Opteron chips include faster and more efficient memory technology that will help boost processing speed by 10 percent while using the same amount of power as previous chips, Brent Kerby, product manager for the Opteron, told Reuters.

They also give AMD some breathing room to respond to steep price cuts by Intel, which is using that tactic to get rid of large stockpiles of unsold older processors.

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Analysts have said that while AMD hasn't dropped prices as much as Intel, it could be hit harder by the battle because it has lacked new products it can introduce at higher prices.

"These products will definitely provide us with more flexibility with regards to the product line," Kerby said when asked about pricing. "We haven't had to cut prices as much because customers have been willing to pay a small incremental (premium)."

Sunnyvale, California-based AMD will roll out all-new chips in the middle of next year, including a quad-core processor. Kerby said AMD had "taped out" the quad-core chip, referring to a manufacturing milestone that marks the completion of major design work.

AMD shares were up 4.3 percent in early afternoon trading on Nasdaq amid a broader rise in the broader markets.

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