Intel pitches plan to beat chip glut

Facing a market glut of microprocessors and weak corporate demand for PCs running Microsoft's new Windows Vista OS, Intel hopes to stay profitable by producing new chip designs faster than its competitors, Intel CEO Paul Otellini said Monday. "There's clearly more capacity to build microprocessors than there is demand in 2007, and probably in 2008," Otellini told financial analysts at the Morgan Stanley Technology Conference in San Francisco. To decrease the impact of a head-to-head processor pricing war with rival AMD, Intel must return to the quick development habits it used when producing its Pentium family of chips, Otellini said. Intel backed off that pace after producing the Pentium 4 and soon began to lose market share when AMD launched the Opteron chip in 2003.

"We're doing product refreshes every two years, which is the model we invented and then stopped doing after Pentium 4, shame on us," Otellini said. "We fell off it -- mea culpa, we screwed up -- and now we're back on that pace." The company has announced a pace of upgrading its processor architecture and shrinking its transistor geometry in alternating years. That puts Intel on schedule to upgrade its 65nm Core 2 Duo processor to a "Penryn" 45nm geometry chip in 2007. The following year, Intel will upgrade its Core microarchitecture to the new "Nehalem" model and in 2009 shrink those chips to an even smaller, 32nm scale.

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News source: InfoWorld

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I'd be unsurprised if even the wide acceptance of Conroe has been held back by spotty mainboard compatibility.

I love that not only can you slap ANY Socket 939 CPU from 2800+ to FX-62 in pretty much ANY Socket 939 board, and the same with AM2; it's also interesting from a mainboard standpoint that a LOT of the AM2 boards are fairly simple respins of 939 boards. You can even get AM2 boards with the nForce3 chipset-- an AGP one which debuted alongside the original S939 chips (if not the original S940/754 offerings)

I bet that's the sort of things which cause mobo makers to LOVE you. You can sell the same board across the entire product line, then change it slightly, and get another 2 years out of the same design.

(Interestingly, while nobody makes a ULI M1695/1697 AM2 board, you can get an nForce3 one!)