Advanced Micro Devices Inc looks set to give Intel Corp a headache following speculation that Hewlett Packard Co and Compaq Computer Corp are about to start using AMD’s K6 processor. AMD has said it can’t comment on the rumors, but both companies have been AMD customers in the past and it is certainly not out of the question that they will work together again in the future. There is also a possibility that Toshiba Corp will use the K6. Compaq’s public relations manager, Rebecca Nahas said the company is considering using AMD chips, along with those of its competitors, in future products that haven’t been announced yet, although it is thought they will be put in personal computers. At the beginning of May Hewlett Packard stepped away from Intel and moved to AMD to provide the chips for its lower end Vectra products (CI No 3,160) and the company said then it would wait to gauge a market reaction to the AMD chips before making a decision whether to axe more Intel chips. It also commented that AMD chips were cheaper than the Intel opposites, although last week Intel announced price cuts that were greater than expected and said they could drop by as much as 52% (CI No 3,182). The ‘news’ comes just weeks after AMD announced its deal with Digital Equipment Corp to use the K6 Pentium II in its high performance personal computer, instead of Intel components (CI No 3,160), coinciding with the legal battle that has ensued. AMD spokesperson, Anne Camden said: We offer a very compelling product that is equalled to anything Intel has out today. A spokesperson for Intel, Chuck Mulloy refused to make any comment about AMD and said the company’s customers can do anything they want.
