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Intel to unveil new chips for servers Monday-WSJ

Intel Corp. will unveil new chips on Monday that it hopes will close a performance gap with rival Advanced Micro Devices Inc. in the market for server system chips, the Wall Street Journal reported.

Chips from Intel provide the processing power for the vast majority of x86 servers, which typically run the Linux operating system or Microsoft Corp.'s Windows.

Intel's move follows a chip launch from AMD, which in April debuted its "dual-core" server chips featuring two electronic brains on a single piece of silicon. Aided by the additions to its Opteron line, AMD's share of the market for x86 server chips rose to 7.4 percent in the second quarter from 5.6 percent in the first period, the Journal reported.

In x86 servers running at least four chips each, AMD grabbed nearly 20 percent of the U.S. market, up from 11.4 percent in the first period, according to the Journal.

Intel said the new products will join the company's Xeon chip line. The latest model, which carries the designation DP, is tailored for servers with sockets to use as many as two chips.

A model for four-chip servers is expected in a few weeks, the Journal said.

Most server makers are expected to adopt the new Xeons, the paper said. Dell Inc., the one major vendor that does not use AMD's Opteron, has announced machines using the new Intel products.

Hewlett-Packard Co., the biggest maker of x86 servers, has found the new Xeon DP chips to be 30 percent to 50 percent faster than earlier Intel models, an HP executive told the paper. The chips also draw no more electrical power than earlier models.

AMD said it expected to remain competitive with Intel's new designs.

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