Intel says Atom shortage will ease soon

Taiwanese hardware makers expressed concern over a shortage of Intel's Atom
processor, but Intel said production volumes will increase.

On Monday, Asustek Computer CEO Jerry Shen said shortages and delays of Atom
will not seriously affect Eee PC shipments, but warned that the issue could
grow more serious as the important pre-holiday shipment season starts later
in the year.

"If Intel can solve it by October, then no problem," Shen said.

The Atom, which Intel launched Tuesday at the Computex exhibition in Taipei,
is designed for low-cost laptops and desktops. Encouraged by the success of
Asustek's Eee PC, more hardware makers have designed new products based on the
chips.

The Atom shortage was caused by this high level of demand for the chips from
hardware makers, said Sean Maloney, executive vice president and general manager
of Intel's Sales and Marketing Group, in an interview.

"We've got four 300-millimeter fabs, so we can really hose this stuff
out," Maloney said, referring to Intel manufacturing plants that use 300mm
silicon wafers to make chips. Around 2,500 Atom processors can be made on a
single 300mm wafer.

"By September, there are going to be very, very high volumes," Maloney
said.

Those chips won't arrive too soon for hardware makers, who are eager to get
Atom-based laptops and desktops into the market.

The current shortage of Atom processors did not hurt the launch of Acer's Aspire
one laptop, but the company is watching developments closely, said Jim Wong,
senior corporate vice president at the Taiwanese computer vendor.

Acer is in weekly talks with Intel about the shortage, Wong said.

IDG News Service

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