IDT ships low-cost Intel clone
The chipmaker starts volume production of a new, inexpensive 200-MHz processor for cheap PCs.
The Santa Clara, California, chipmaker offers its Intel-compatible WinChip to PC vendors building low-cost boxes. In the past, the company has said that its chips are targeted at the sub-$800 desktop PC market and sub-$2,000 notebook computer market.
Most of the production of the Intel-compatible WinChip has been moved from California to a new plant in Oregon, according to the company. IDT has also consigned production to IBM for some chips, as part of a recent agreement with Big Blue intended to boost customer confidence in IDT, particularly where large orders are concerned.
A 200-MHz WinChip costs a little over $70, with the price decreasing for large-volume customers.
"They're going after a substantial market channel that is not generally served very well...What IDT observed is that there was an opportunity there with very small, very cost-sensitive vendors. It was an open opportunity," said Dean McCarron, an analyst with Mercury Research.
Low-cost Intel-clone processors are increasingly winning over lower-tier PC makers as a way to reduce production costs on sub-$1,000 PCs. IDT sells to small customers such as Evergreen Technologies, Computer Works, and PC Club.
Although Intel-only PC giants such as Dell and Gateway 2000 sell far more systems per month than vendors like Computer Works and PC Club, the category of small computer vendors makes up over one-third of the PC market, according to IDT.