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Intel's Atom Chips Are in Short Supply

May 01, 2008 at 03:11:00 AM, by Sourabh Kalantri Rating: 0 out of 5

Demand exceeds even the most optimistic expectations from Intel.

Intel has confirmed that the much-awaited Atom chips for low-cost laptops is facing demands beyond their initial expectations. The company further reveals that there are no manufacturing hurdles involved with Atom, it's just that the they've received more orders from PC makers than what they had originally planned for.

Intel has scheduled the official launch of Atom chips for release in June 2008. Mini-laptops powered by them will be available in market shortly thereafter. More than 10 PC makers have already placed orders with Intel for Atom chips. Intel is bumping up production to address this Atom concern but the shortage for the upcoming Atom chips will be felt until third quarter of 2008.

Intel Atom's Size

Size comparison for Intel's Atom CPU

Trade publications like Apple Daily (Chinese) confirm this shortage of Atom chips at launch. HP (Mini-Note HP Compaq 2133) and ASUS (Second-gen Eee PCs with Celeron M 900MHz) will benefit the most as they've gone in for laptops which are not dependent on Atom entirely.

Initial reports suggest that Intel will be able to meet only 40% of orders for Atom chips initially. The PC makers most affected by the shortage are: Acer, Dell, MSI & Gigabyte.

Source: WSJ & DigiTimes

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