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3/17/2005
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Intel Americas President: Dual-Core Transition Will Be 'Evolutionary'

Intel's transition to dual-core processors in the second quarter should be "evolutionary" and cause little disruption in the supply chain, said Tom Kilroy, president of Intel Americas.

Intel's transition to dual-core processors in the second quarter should be "evolutionary" and cause little disruption in the supply chain, a top executive for the company said Thursday.

Tom Kilroy, president of Intel Americas, told CRN that the Santa Clara, Calif.-based chip maker has been engaged in extensive dialogues with large OEMs and the channel since last year and believes it has correctly gauged what the market needs when the new chips ship.

Kilroy also appeared at the Intel Solution Summit in Las Vegas, where he spoke to about 600 channel partners about the company's product road map, among other things.

Though the transition from single-core to dual-core chips is considered a milestone for Intel--and has been widely anticipated since last year--a gradual rollout should keep the pipeline stable, Kilroy said.

"In terms of volume and magnitude, it's not going to be as significant as last year," Kilroy said, referring to last year's Prescott and Northwood processor transitions. While some pockets of channel and OEM demand were stronger than expected last year, imbalances from at least one large OEM caused an inventory buildup that, in turn, forced Intel to slow production for several weeks.

A second-quarter launch will focus on Intel's high-end desktop processor lineup, targeted at "extreme" users such as gamers. Through early 2006, Intel will release dual-core processors for its server and mobile lines as well.

"It will be evolutionary," Kilroy said. "The one thing we're sure to do is build enough parts to meet market demand."

In addition, Kilroy told channel partners that later this year Intel plans to roll out a new supply facility in Miami to create a more efficient pipeline on the East Coast. The company launched a supply facility last year in Los Angeles.

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