Gateway to double AMD orders

Continuing Intel chip shortages prompted move, says consumer PC giant

Consumer PC maker Gateway is to give chip maker Advanced Micro Devices (AMD) a boost with plans to double its quarterly orders.

Just four months ago, Gateway resumed making AMD-based PCs, after blaming financial losses on Intel supply problems. The move paid off a few weeks later when Gateway was able to ship 1GHz PCs based on AMD chips, while Intel sent its 1GHz Pentium IIIs to companies such as Dell Computer.

"In [terms] of magnitude we'll probably double our AMD mix or better in this quarter in our consumer space," said Gateway Chief Financial Officer John Todd during an analysts' conference call, according to several reports.

Intel chip supplies have been tight since last autumn, due to stronger-than-expected growth in the semiconductor market after a cyclical downturn. Intel is stepping up manufacturing capabilities with several billion dollars' worth of investment in chip plants, but has acknowledged shortages could continue for 12 months.

Gateway continues to use Intel chips but tries to limit them to business-oriented machines, relying on AMD processors for its consumer line. The OEM is the largest consumer PC maker in the US.

More details to follow

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