"Intel continued to invest heavily in both technology product development and manufacturing capacity during the downturn, and we've said repeatedly that is critical to continue to advance the products, the technology, and the state of the art in the industry," Siu says.
Kastner says Intel's 300-mm manufacturing capability provides it with a huge advantage over AMD, which isn't expected to move to 300-mm production until 2005.
"That may be one of the reasons the chips are so attractively priced on announcement day, which is something they have never really done before," he says. More typical of Intel's introductory pricing was the $700 price tag placed on its first 3-GHz chip with 800-MHz front-side bus, according to Kastner. Intel also may have felt pressure to provide a lower cost structure because the Prescott chips were delayed from their original anticipated introduction, he says
Siu declined to comment on continued rumors that Intel is working on a 64-bit x86-based processor line that would compete with AMD's 64-bit Athlon.
"Our position has always been that Intel will offer capabilities when the ecosystem, including operating system and other things, are there to support it," Siu says.
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