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October 5, 1998

INTEL SEES XEON SHORTAGES DUE TO HIGH DEMAND

By CBR Staff Writer

Intel Corp admits that it’s experiencing shortages of its Xeon 400 MHz chip for four-way servers and up. The product represents high margins for both Intel and its OEM manufacturers, which has helped create the appetite. Intel says it’s doing everything it can to get the chips out there and that, from what it knows now, it should catch up with current demand levels by the middle of the fourth quarter. Given that the chip is a new portion of Intel’s business, the company says it’s not material to the bottom line and should have no tangible impact on its third quarter financial results.

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