* Intel chips feature smaller construction process
* Follows planned schedule outlined in the past
* Increased speed and abilities
By Ian Sherr
SAN FRANCISCO, March 16 Intel Corp (INTC.O)
released its newest server chips on Tuesday, as it seeks to
maintain its dominance over rival Advanced Micro Devices Inc
AMD.N, and prepare for an expected rise in demand.
The new microprocessors, designed to power both servers and
high-end desktop PCs, are the first of Intel's server chips
featuring smaller transistors that have helped the company's
laptop and desktop chips push stronger performance while eking
out better energy efficiency.
Intel also built in security features the company says can
encode and decipher files much faster, effectively removing the
"encryption tax" or computer performance lost due to protecting
The chips will be released under the Xeon product line for
servers, and Core i7 for desktop computers, which Intel hopes
will gain traction particularly with the entertainment and
video game markets.
But the biggest opportunity rests with servers, said
Intel's general manager of server marketing, Boyd Davis, where
an estimated one-third of the market is running on chips made
more than four years ago.
Although roughly nine out of 10 of the world's servers
contain an Intel brain according to IDC, they are not the only
ones vying for those potential server sales.
Patrick Patla, general manager of AMD's server division,
said the company's newest chips will also offer increases in
speed pushed by a dramatic redesign.
"There will be no single bigger performance jump in the
history of Opteron than the jump we are going to take from 2009
to 2010," he said, referring to the server chip's product
AMD's newest chips are due in the next few weeks. It
remains to be seen how they will match up against Intel's
(Reporting by Ian Sherr)