Intel: Nehalem not delayed

Intel most recently reminded the industry of Nehalem’s timeline in its Atom processor rollout and at Computex, where it demonstrated the processor.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 6/10/2008

Intel Corp is disputing reports that suggest its Nehalem server part launch may be viewed as delayed.

The company confirmed with Electronic News this afternoon that Nehalem, a 45-nm server architecture, is on course for a 2008 ramp.

Intel set up an IT center at Computex, in Taipei, to showcase a series of live demos based on Nehalem.

“Our long standing position is that the Nehalem will be in production in Q4 2008. We are on track for that. There has been no change,” Nick Knupffer, an Intel spokesman, told Electronic News.

Reports of a delay spread across the Web today after American Technology Research Analyst Doug Freedman Monday released a research note on Nehalem. The note states that based on the research company’s checks, Intel’s Nehalem server parts will initially launch in single-socket only and that American Technology Research believes doing so will be viewed by customers and investors as a delayed ramp of the company’s second-generation 45-nm server architecture.

“We believe Nehalem server parts will initially launch (in late 2H08) in single-socket only, despite expectations and demand for higher-margin two-way server processors. We believe this may be viewed as the second launch delay in recent weeks and is likely to call into question Intel's solid record of on-time execution,” the note states.

When question on an initial single-socket launch, Knupffer said: “That’s rumor and speculation. We haven’t actually announced what we are going to launch when and how.”

Intel most recently reminded the industry of Nehalem’s timeline in its Atom rollout and at Computex, where it demonstrated the architecture.

Intel confirmed with Electronic News in late May that its Montevina notebook platform shipments would be delayed by three weeks. That technology is now expected to ship July 14. 
 
The American Technology Research note continues to state that the firm believes the PC market remains healthy and that inventories are within normal ranges within most parts of the market. “Post Computex, we believe investors will grow more comfortable with PC unit growth for 2008 with the low-end of the market driving unit growth and semiconductor content,” it reads.

American Technology Research also said in the research note that Nehalem’s late 2008 ramp could benefit Intel’s competitor Advanced Micro Devices, which last year suffered from delays in its Barcelona line.

“We believe the Nehalem launch plan opens the door for AMD's Shanghai server chip (45-nm shrink of Barcelona) in 2H08/1H09 should AMD be able to execute to its present schedule,” the research note states.

American Technology Research is maintaining its “Buy” ratings on Intel and AMD. “We believe both companies are benefiting from strong PC expectations, with Intel continuing to dominate most segments of the market. AMD shares remain attractive as the company works to turn around its post Barcelona prospects, with a potential window of opportunity with Shanghai shipping into a less competitive market if Intel’s two-way Nehalem parts are pushed out. We are growing incrementally more positive on shares of AMD as a result of missteps by Intel,” the firm’s research note concludes.