In-Stat/MDR Reports Intel x86 Competitors Continue to Subsist, Yet Their Future Remains Uncertain.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Aug. 4, 2003

Despite industry pundits' belief that they would not survive, AMD and other Intel x86 competitors have continued to subsist, and at times have even thrived, despite the economic roller coaster of the past several years. AMD, along with smaller Intel x86 competitors VIA and Transmeta have weathered the storm; however, the near future is uncertain, according to In-Stat/MDR (http://www.instat.com). "It is widely recognized that Intel makes a very formidable competitor, and conventional wisdom would dictate that it is fool-hardy of these companies to challenge the behemoth's grasp on this market," said Kevin Krewell of In-Stat/MDR. "But like moths to the flame, each is drawn by the promise of riches selling x86 processors."

AMD proved to be an able competitor to Intel across all the various market segments, but Transmeta and VIA only compete in one or two markets. AMD is also the oldest and most persistent Intel competitor, and has gone through times where many thought the company would not survive and 2004 could be the final make-or-break year for the company. In-Stat/MDR estimates that AMD grew its market share in x86 processors from 16% in 2000 to 20% in 2001, but dropped back to 16% in 2002. VIA and Transmeta combined held slightly more than 1% market share in 2002 and made no substantial gains from 2001. VIA's market share should remain stable in 2003 and 2004, but Transmeta will lose share during the product transition from the TM5800 to the TM8000.

A recent In-Stat/MDR report also outlined the following:

-- AMD competes with Intel across the board with desktop, mobile,

server, and value processors. But AMD must control its chip

costs by swiftly migrating to 90nm in 2004. AMD needs

competitive mainstream product and will continue to use its

model numbering system to be competitive with Intel's

higher-clocking Pentium 4. The model numbering scheme will

also allow AMD to substitute the more cost effect Paris die

(with its smaller cache) for the larger ClawHammer die in the

Athlon 64 line. AMD needs to make its Opteron family a success

in order to improve its overall ASP to the point where it can

be profitable. In order to drive sufficient volume, it will

need major server OEM support. IBM has made an initial box

with an Opteron, but AMD will need much more than that.

-- VIA's challenge for the future will be to chart its own path

in systems buses in 2005. Just as AMD did with Athlon, VIA

must create an infrastructure independent of Intel's. VIA is

in a good position to do so because of its extensive system

logic experience.

-- Transmeta will require a significant period of time regaining

design sockets for the TM8000, as many TM5800 designs have

migrated to Pentium M. Transmeta new mobile processors will be

under significant ASP pressure. The low volumes of Transmeta

designs, the time necessary to win sockets for the TM8000, and

the pressure on ASP to win back sockets are not promising

strategies to improve Transmeta's top line revenue.

The report, "Intel x86 Competitors" (#IN0301104IN), focuses on Intel's competitors making x86 processors. It covers the Desktop, Mobile, Value, and Server processor business of AMD, Transmeta, and VIA. It includes volume estimates by product and manufacturing cost estimates for AMD to 4Q 04. The report also covers the introduction of Athlon 64 from AMD, TM8000 from Transmeta and C5XL and CN processor from VIA. Roadmaps include each vendor's migration to 0.09-micron semiconductor process technology. Chip set and platform technologies are included. In addition, AMD's plans to move the mainstream market to 64-bit computing in 2004, as it struggles to balance challenges by Intel's Pentium M and Pentium 4 processors, is also included. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-semi-intel.htm or contact Rick Vogelei at 480-609-4533; [e-mail]. The report price is $2,495.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.