Gateway to up AMD chip usage to 50 percent

Computer manufacturer Gateway is likely to continue eroding the number of Intel processors it uses in its PC family with the cheaper and often faster range of chips from AMD.

European vice president at Gateway Mike Swalwell, told ZDNet Wednesday that there will be a gradual increase in the percentage of AMD microprocessors installed until they constitute half its consumer offering.

"It's been a success," Swalwell says of Gateway's increased use of AMD chips. "We expect a long relationship with AMD. At the moment 25 or maybe 30 percent is AMD"..."That will probably max out at about 50/50."

Swalwell points to Intel's continuing problems providing regular supplies of chips as a key factor for the move. "You can't be reliant on a supplier that is that erratic," he says. "I think shortages have another six to twelve months to run."

Although AMD's microprocessors are currently found only in Gateway's consumer product line the high power Sledgehammer chip from AMD, to be released next year, could start competing at the top end of Gateway's product line.

However the company's business to business group product manager for Europe Richard Bull, believes cracking the business market could take AMD longer than it would like.

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