AMD Rolls Out New Athlon Chip

News of the new multiprocessor workstation and server chip, the Athlon MP 2100+, was overshadowed by the company's dour mid-quarter update on Tuesday.

Advanced Micro Devices Inc. on Wednesday launched a new multiprocessor workstation and server chip, the Athlon MP 2100+, but the news was largely overshadowed by the companys dour mid-quarter update late Tuesday.

The 1.73GHz chip is designed for use in single- and dual-CPU workstations and servers. The chip succeeds a 1.67GHz Athlon MP 2000+ as the top-performing chip in AMDs multiprocessor product line.

AMD said it expects more than 34 manufacturers worldwide will offer systems based on the chip, but the Sunnyvale, Calif., company has yet to secure design wins for the chip with the largest computer makers, such as Hewlett-Packard Co., Dell Computer Corp. and IBM, which feature only Intel Corp. processors in their Windows-based servers.

The MP 2100+ is priced at $262 in 1,000-unit quantities.

AMD introduced its first multiprocessor chip last year in hopes of tapping into what was once one of the strongest selling enterprise markets, dual-processor rack-mounted servers.

But the chipmakers timing proved unfortunate, with its new product hitting the market amid an widespread downturn in IT spending that chilled demand for servers of all types.

During a conference call Wednesday with financial analysts, AMD executives admitted that sales of its multiprocessor chips had fallen short of goals, contributing to the companys overall sales shortfall this quarter. Citing weaker than expected demand for all its microprocessor products, AMD warned Tuesday that it would post a "substantial operating loss" this quarter, with sales falling more than 20 percent below earlier projections.