AMD to Kill Duron Chip

Less than two years after it was launched, Advanced Micro Devices Inc. has announced it will phase out the Duron processor targeted at low-cost consumer PCs as the company revamps its product line and makes way for a new high-end PC chip.

AMD Chairman Jerry Sanders disclosed the move late Tuesday during the companys quarterly earnings announcement, saying that the manufacturing plant currently used to make Duron processors in Austin, Texas, will be converted to producing flash memory chips only by years end.

Late this year, AMD will introduce a new processor, codenamed Clawhammer, thatll be targeted at the high-end PC space dominated by Intel Corp.s Pentium 4 line. Shortly after launching the new chip, AMDs current top-end product, the Athlon XP, will be repositioned for use in low- to mid-range PCs, or systems generally costing less than $1,000.

Durons, first released in May 2000, were designed to enable AMD to more effectively compete with Intels Celeron product line, which the company says is targeted at "value conscious" PC buyers. Like the Celerons, the Durons are offered with less on-die memory, slower bus speeds and at lower clock-speeds than the companys top performing product line.

Currently, AMDs desktop Durons are offered at speeds from 1GHz to 1.3GHz, and sell for between $64 and $84 a piece. By contrast, AMDs top performing Athlon XP 2100+ is priced at $330 per chip.