P4 supply position tightens

There is tightness in the supply position of P4 processors according to market sources. Shortage is particularly experienced in the supply of 1.5 GHz P4 processors.

"We admit there is a tightness in the supply. If partners are a little flexible in accepting CPUs of different clock speeds, then they shouldn't face any problems in the supply position," said Amar Babu, GM-Channels, Intel Asia.

Market sources say that Intel wants to dispose off its P4, 1.4 GHz CPU inventory and has warned the market that the supply of 1.5 GHz CPUs could tighten. "Finding a CPU that users look for with particular speed has become a problem," pointed, PK Krishnaprasad, Chief Executive, SES Technologies.

"Since Intel has started using different motherboards, matching motherboards with available processors has become another bottleneck," remarked Kishin R Keshria, Director, Alpha Data. With Intel in the process of making P4 as the mainline processor, Babu said that there is a shortage of particular products that partners look for.

With the US and Europe gearing up for Christmas sales, Intel would naturally divert its processors to these high-value markets. Yet, one thought the chip-maker would have learnt its lessons from last year's acute shortage of processors around this time.

"We have indeed learnt our lessons but manufacturing plans have to take into consideration several factors. We did not imagine that P4 would ramp up this fast," said Babu who is hopeful that by the month end the tightness in the supply of P4 should ease out.

(CNS)