An AMD official says OEMs have turned to the company in the wake of Intel's Sandy Bridge chipset flaws.
In the wake of an embarrassing design flaw concerning Intel's "Sandy
Bridge," archrival Advanced Micro Devices took the opportunity to
point out that Intel's recent chipset troubles have boosted
business at AMD.
Leslie Sobon, AMD vice president of product and platform
marketing, told Dow Jones Newswires that PC makers had contacted
AMD for their chipsets and guidance following Intel's declaration of a
design flaw in a chipset that supports the company's new "Sandy Bridge"
"We have some customers and retailers who have come to us
specifically as a result of Intel's chip problem," Sobon told the news
organization. "Some retailers have had to take things off their
shelves, so they call us to ask what they could get from our OEMs
that's similar. And OEMs are asking us for product, as well."
Intel rolled out the Sandy Bridge chips during the Consumer
Electronics Show (CES) in January, which combine Intel 3D HD graphics
capabilities with microprocessors on one 32-nanometer device. Company
CEO Paul Otellini predicted the Sandy Bridge platform--which Intel
calls the 2nd Generation Core processors--will account for
one-third of Intel's 2011 revenue and will generate more than $125
billion in revenue for the PC sector.
The design flaw, announced by Intel Jan. 31, affected four of six
SATA (Serial ATA) ports in the chipset, which over time could cause
problems in the performance of such PC peripherals as the SATA
hard-disk drive or optical drive. Intel executives estimated that the
problem could affect 5 to 15 percent of the chipsets made, and stressed
that the issue was with the chipset and not the Sandy Bridge processors.
Intel has since resumed shipments
of the chipset to PC makers whose PC configurations were not affected
by the problem, but the damage has likely been done, despite Intel's
assertion that it had subsequently found a fix for the problem and was
beginning to manufacture new chipsets with the problem corrected.
Acer, Dell, Samsung and HP all announced they would take a range of
actions, including offering refunds or replacements to buyers of PCs
with the problem chipset. Intel said about 8 million of the flawed
chipsets have been shipped. All OEMs affected said they are working
closely with Intel on plans to help affected consumers.
In the long run, however, some analysts feel the episode, though a
high-profile embarrassment for mighty Intel (the company dominates the
worldwide notebook processor market with an estimated 86 percent market
share; AMD controls just 14 percent), will do little long-term damage
to the company. That's excusing the $1 billion in lost revenue and
related expenses Intel executives predicted the flawed chips will
That's not to say things are running in perfect form over at AMD
the company, still searching for a new CEO following the departure of
Dirk Meyer in January, is also losing Robert Rivet, chief operations
and administrative officer, and Marty Seyer, senior vice president of
corporate strategy, according to an AMD statement released Feb. 9.
John Docherty, senior vice president of manufacturing operations, is
assuming Rivet's responsibilities-he is in charge of all aspects of
AMD's manufacturing process-and will report to Thomas Siefert, the
company's chief financial officer and acting CEO until a replacement
for Meyer is found.