“Intel, the largest computer chip maker, said on Monday that it would postpone volume production of a new Itanium processor for network servers because of problems with the quality of the product,” Laurie J. Flynn reports for The New York Times. “The server chip, which is being developed under the code name Montecito, was scheduled for release in early 2006, the company said, but will now be shipped in ‘mid-2006.’ Intel would not provide details.”
Flynn reports, “The delay amounts to something of a black eye for Intel, as it seeks to maintain its lead in server chips over Advanced Micro Devices. Jonathan Eunice, an analyst at Illuminata, a market research company, said, ‘The real impact here is it gives A.M.D. a longer window to attack.’ An Intel spokesman, William E. Giles, said the company still expected Montecito to offer twice the performance of the current version.”
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