Intel pulls 1.13 GHz chip due to flaw

Intel announced it has discovered a flaw in the 1.13 GHz Pentium III processor and has halted production and delivery of the chip. In a separate decision, the company also reduced the prices of most of its chips.

By pulling the 1.13 GHz Pentium III off the market, however, Intel has, in effect, has given the bragging rights for having the fastest processor in production back to Advanced Micro Devices. The latter announced Monday that computer makers are now shipping PCs with its 1.1 GHz chip.

Intel announced the 1.13 GHz processor on July 31 just after AMD announced a new 1.10 GHz Athlon chip. The flaw is serious enough that Intel has also recalled all of the 1.13 GHz chips it has shipped to date. Because that number is relatively small, the move has little or no impact on the company’s earnings, unlike two previous recalls that cost Intel several hundred million dollars each. Wall Street investors neglected the latest chip flaw as Intel’s shares rose $1 on the day of the announcement.

Intel spokesman Mike Sullivan said that test have shown that software used to test the performance of computers doesn't run properly on desktop machines using the chip at certain frequencies and at certain temperatures.

Intel discovered the malfunction in the IC just this past weekend and is working to develop a fix. Kyle Bennett, a reviewer at computer hardware Web site HardOCP, said he tested three of the Intel processors and each suffered crashes running the Windows operating system. Bennett said the chip might have been hastily released because of Intel's intense competition with AMD. "I think Intel was

in too much of a rush to wear the speed crown."

While minor, the problem is but the latest Intel has been experiencing in its effort to regain the lead in microprocessor performance. While it may have demonstrated processors operating faster than the 1.1 GHz chip being shipped by rival AMD, the latter has consistently out-performed Intel in bringing top-end chip to market in volume. And, AMD has not given any indication its production technology will not be able to continue to keep up with Intel through at least the 2 GHz production level.

Meanwhile, Intel announced a widely expected round of price cuts, including:

• The 933-megahertz Pentium III Xeons dropped to $558 from $719



• The 1GHz Pentium IIIs declined to $669 from $990,



• The 933MHz P-III was reduced to $508 from $669, and 866MHz chips to $358 from $465.



• Celerons running at 700MHz now cost $138, down from $192. The 667MHz chips were cut to $112 from $170, while 633MHz chips are down to $93 from $138.



• The price of 750MHz Pentium IIIs for laptops was lowered to $401 from $562.