Intel Corp has stopped work on developing a Rambus DRAM chipset for use in notebook computers, a source close to the company said yesterday. The Greendale project was canned because notebook OEMs won’t use expensive Rambus DRAM memory over the cheaper alternative of synchronous DRAM in their laptops.

The source claims that Intel is still planning to develop a mobile Rambus chipset when the market demands it, but that may not be until 2001. The San Jose, California-based chipmaker is far more cautious about trying to push the market into using Rambus after the fiasco that surrounded the launch of the 820 Rambus desktop chipset this year. The news is another blow for the developer of the memory technology, Rambus Inc, which said last week that it was looking for new applications in the communications field for the technology.

Intel refused to comment on the rumors surrounding the Greendale project, saying that it doesn’t talk about unannounced products.