Compaq to tap AMD for notebooks

Compaq will give AMD a huge lift by using the Californian firm's processors in new notebooks set for release early this year.

Intel may be steering even more desktop PC volume its way after cutting prices on the 233MHz Pentium II but grabbing a chunk of the world's number one PC vendor's products remains a huge win for AMD.

AMD announced yesterday it had begun shipping a version of its K6 processor that is more power-efficient than the desktop flavour. The 233MHz and 266MHz chips are built on a state of the art 0.25-micron manufacturing process, ensuring smaller chips that are cheaper to manufacture and sip less battery life.

Intel, by contrast, is still a long way from being able to offer a mobile-optimised version of its fastest Pentium II family.