San Jose (California), Sept 24: After years of following Intel Corp.'s lead, Advanced Micro Devices Inc. has changed course and launched a line of personal computer processors with features typically found only in high-end computers and servers. Yesterday's announcement sets the stage for renewed competition between Intel, the world's largest semiconductor company, and AMD, which has been struggling to return to profitability amid the economic downturn and a bruising price war with its larger rival.
AMD's new Athlon 64, so named because the chips process data in 64-bit chunks, can handle exponentially more memory than 32-bit Pentium 4 chips from Intel. But to take full advantage of the new technology, computers must have supporting software and much more installed memory. Intel, whose processors still ship with higher speeds than AMD's new offerings, says the PC market is not yet ready for the switch and 32-bit chips have not reached their limits.
AMD strongly disagreed during its flashy, 90-minute launch event. It pointed to a variety of software firms working on 64-bit programs, including Microsoft Corp., which is developing Windows XP 64-bit edition, and epic games, which is updating its popular unreal tournament. AMD said the new processors will usher in the next wave of innovation for PCs, including "cinematic" graphics.
The Athlon 64 chips can run programs that were designed for 32-bit processors, and they are designed to boost a computer's performance regardless of whether its programs are running in 32- or 64-bit mode. Bureau Report