Intel sows hyper-threading into P4s

New technology should allow users to run multiple programs without affecting performance

In a busy week for the world's largest chip vendor, Intel brought forward production dates for a new Centrino bundle, introduced new hyper-threading technology on its Pentium 4 (P4) processor and was called upon to slash its chip prices to help spark a PC market recovery.

Intel confirmed last week that its Centrino chip bundle will now support the 802.11g wireless standard by the end of the year.

The company had originally planned combined 802.11a, b and g products for the middle of next year, but brought the date forward because the standards are progressing more quickly than expected.

The 802.11g standard offers 54Mbps Wi-Fi connectivity over the 2.4GHz spectrum and is backwards compatible with 802.11b systems.

Michael Wall, an analyst at Frost and Sullivan, said as long as Centrino sticks to the standard about to be ratified this will work.

"It's not a good idea to start before the final certifications have been completed. However, if Intel sticks to a reasonable timetable it should be fine. The danger is in starting too early and getting it wrong," he said.

Last week Intel also announced tweaks to its mainstream processors, with the new P4 chips sporting hyper-threading technology and an 800MHz frontside bus (FSB).

The new 2.8C, 2.6C and 2.4C GHz chips come backed up by a number of new chipsets. Hyper-threading brings server-like dual-processing performance to a single PC chip by allowing it, in certain circumstances, to run multiple software applications faster.

Among the chipsets released was the 865PE, formerly known as Springdale, which will support hyper-threading, the 800MHz FSB and dual-channel DDR400/333/266MHz memory.

The 865G chipset is the first offering in the company's Stable Image Platform Programme, announced in February.

Designed to appeal to the business sector by cutting PC maintenance costs, the programme offers at least 12 months of chipset hardware and software driver stability for corporate PC buyers.

"In choosing PCs using P4 processors with hyper-threading, corporate IT organisations get more PC performance while minimising the impact of such essential background tasks as virus checking, email encryption and file compression.

"This results in a more secure infrastructure," said Louis Burns, general manager of Intel's Desktop Platforms Group.

In the performance stakes, hyper-threading should allows users - particularly those running multimedia applications - to run multiple programs without affecting performance.

Intel has claimed the new processors will let users record live TV while running graphics-intensive games without having an impact on playback quality.

The 2.8GHz, 2.6GHz and 2.4GHz chips are priced at $278, $218 and $178 respectively. The new 865G and 865PE chipsets, which also come with optional Raid support, cost $41 and $36.

But the new processors arrive just weeks after Intel knocked up to 30 per cent off the cost of existing low-end and mid-range P4 chips after it was called upon to lower its prices to kickstart a PC market recovery.

The call came from senior analyst Nam Hyung Kim at research firm iSuppli, who said reductions could help start a recovery in the sluggish PC arena.

Kim maintained that while the memory market continues to be hit by falling prices, further cuts in prices by Intel might spur demand for more chips and lead to more PC sales.

Kim said: "Although Intel cut mid-to-low clock-speed P4 prices by 20 to 30 per cent, pricing for the microprocessor is too high. Aggressive price cuts could accelerate suppliers' product mix transition from SDRam to DDR [memory]".

But in the UK, Matthew Wilkins, senior analyst at iSuppli, said: "While cutting prices might spur demand for PC components, it won't necessarily result in cheaper PCs.

"System builders usually stick to certain price points, but further processor price cuts would allow them to make systems more attractive with better graphics cards or more memory."

Longer PC lifecycles and an uncertain economic climate means corporates have been slow to replace machines bought to cope with the millennium changeover.Wilkins predicted that many will upgrade later this year, boosting the market.