Intel delays Celerons because of manufacturing crunch

The Santa Clara, Calif.-based chipmaker has delayed the release of 633- and 667-MHz Celeron chips by approximately two months, according to industry sources close to the company. The chips, designed for budget PCs, were slated to appear in computers beginning next week. Instead, they will emerge toward the end of June, along with a 700-MHz Celeron and a 933-MHz Pentium III. An Intel spokesman would not comment on the Celerons' release date but said that they are slated to come out in the second quarter. Rival Advanced Micro Devices may benefit from the delay. The Sunnyvale, Calif., company said that it has made several hundred thousand more Athlon processors than it has sold in the past two quarters. Because of the time frame for the surplus, many of these extra chips likely run at speeds between 550 MHz and 650 MHz. Computer makers, tiring of Intel chip shortages that have lingered since last October, may well begin to adopt more Athlons. Most of the computer makers already have computers that can accommodate Athlon chips. Moreover, a review of chip prices among dealers indicates that Athlon chips in the 600-MHz range are only slightly more expensive than 600-MHz Celerons--when they can be found. As a result, AMD may try to increase its market share through fire sale pricing. In the past, Intel often capitalized on AMD's inability to manufacture chips in adequate volumes through sudden, and steep, discounts.