Nanotech - The Circuits Blog

Intel is set to announce the biggest makeover for its Atom processor since it was introduced back in the spring of 2008. And PC makers are ready with new Netbook models, some due before the mammoth Consumer Electronics Show in January.

HP has stopped selling preconfigured Mini 5101 Netbook models directly as it readies models with the new Atom processor.

(Credit: Hewlett-Packard)

Netbooks--tiny laptops used for Web surfing and light production tasks--have gained in popularity as a cheap alternative to a laptop. They can be had for as little as $250--or under $100 when bought as part of a two-year contract at phone carriers such as a Verizon.

Inside new Netbooks will beat Intel's latest "Pine Trail" Atom processor technology. This watershed design will squeeze the graphics function--previously on a separate chip--into the central processing unit, or CPU, a first for Intel. And what does that mean to consumers? "Better battery life. But performance more than anything," Intel executive vice president Sean Maloney said in a recent CNET interview.

Evidence of a rejiggered Netbook lineup can already seen at Hewlett-Packard, which has stopped selling preconfigured models of its well-received Mini 5101 directly from the HP Web site in preparation for new models to come, according to the company.

And Dell is on board too. "You can expect that Dell will be offering products based on Intel's next-gen Atom platform, aka Pine Trail," said a Dell spokesperson Monday. All major vendors currently offering Netbooks--such as Acer, Asus, Toshiba, and MSI--are also expected to refresh their lineups.

Intel, which is already on the record saying that the Pine Trail Atom is shipping this quarter, has made integration one its biggest themes in 2010 and beyond. Its Arrandale Core i series of processors for mainstream laptops, due by early next year, will also combine the graphics chip (GPU) with the CPU. And future generations of the Atom processor will be even more highly integrated.

One of the first new Pine Trail Atom processors expected to appear is a 1.66GHz version (rumored to be dubbed the N450). After this, a faster 1.83GHz version, the N470, is due.

Updated at 8:00 p.m. PST: Pine Trail is the name of the technology platform; Pineview is the name of the new Atom processor.

With possible action by the Federal Trade Commission looming, an unidentified Dell executive is cited prominently in legal documents as a person who might exonerate Intel, or at least mitigate the severity of the charges leveled against it for alleged antitrust behavior. So, what is known about this Dell mystery man?

This week the Dell executive, referred to as "Mr. A," was cited throughout the European Union ombudsman's "decision" on on a complaint filed by Intel about the European Commission's ruling against the chipmaker. Ombudsman P. Nikiforos Diamandouros' November 18 decision found "maladministration" on the part of the Commission because of its failure to make a "proper note" of a meeting with Dell--represented most prominently by Mr. A in the the ombudsman's decision.

Diamandouros has been the The European Union's ombudsman since April of 2003.

Most importantly, Mr. A is brought up by Intel as a person who has made exculpatory statements--and therefore could refute allegations such as those made about Intel and Dell in New York Attorney General Andrew Cuomo's complaint against the chipmaker.

And who is Mr. A? He was "a senior Dell executive" and the person "responsible for Dell's relationship with Intel," according to the ombudsman's published statement.

What else is known about Mr. A? Intel asserts in its complaint to the Commission--which the ombudsman responded to in its decision--that "Mr. A's FTC [Federal Trade Commission] testimony exonerates Intel and contradicts the allegations contained in the statement of objections concerning Dell's relationship with Intel."

And Intel has had more to say about this person. "Mr. A again gave sworn testimony confirming that the key points made in his 2003 FTC testimony, to the effect that Dell did not have an exclusive relationship with Intel and that Intel did not 'threaten' or 'punish' Dell for considering a dual-source [Intel and AMD] strategy."

Also in the ombudsman's decision--which refers to Intel as the complainant: "It is clear from these events that the Commission sought to conceal and suppress exculpatory evidence. Also in the complainant's view, this misconduct (and the failure to make a complete note of the meeting which would have eliminated any debate as to what Mr. A said) constitutes a serious act of maladministration."

Intel spokesman Chuck Mulloy said Thursday that Intel continues to talk to the FTC. "Yes we are talking. We are continuing to answer their questions concerning our business practices and now we are also explaining the settlement we just completed with AMD [Advanced Micro Devices]," Mulloy said.

Intel Capital announced seven new investments Tuesday, including a storage systems company for Apple users and a cloud computing company.

"Innovation does not stop during economic slowdowns," Arvind Sodhani, president of Intel Capital and Intel executive vice president, said in a statement. "New technologies are the drivers of growth that help lead economies back to prosperity."

Investments as spelled out by Intel:

• Active Storage (Los Angeles) provides a media storage platform for Apple-based infrastructures. The company's hardware RAID (Redundant Array of Inexpensive Disks) solutions are aimed toward the business and creative industries, particularly video post-production, broadcast, publishing, education and science. The company intends to focus this round of funding on R&D and sales and marketing.
  
• Joyent (Sausalito, Calif.) provides cloud computing infrastructure and services to help customers develop, deploy and manage Web applications and sites, and to improve data center performance. Joyent's cloud computing technologies offer better performance, utilization rates, savings and security. Joyent will use the funding to accelerate its product development and for increased global expansion.
  
• Crucialtec (Cheon-Ahn City, Korea) is a manufacturer of specialized input devices that utilize optical technology for mobile phones, smart phones, and IPTV (Internet Protocol television) remote controllers. Crucialtec's Optical Trackball enables users to enjoy the full internet experience with mobile products as they do with a PC. Intel Capital's investment will help with the development of a new generation of mobile solutions for the global market by providing Crucialtec with additional working capital.
  
• Gudeng Precision Industrial (Taipei, Taiwan) is a semiconductor front-end equipment manufacturer that helps customers enhance product yield and reduce production costs. Presently, Gudeng Precision is the world's leading photomask and wafer handling total solution provider, and the company's products are accepted and certificated by worldwide tier-one customers. Gudeng Precision will use the funding to expand business in China and enhance working capital.
  
• V-Cube (Tokyo) develops and markets Web-based videoconferencing systems. Its flagship "nice to meet you" service enables one-to-one, one-to-many, and many-to-many interactive real-time communications and on-demand services over the Internet. Currently, V-cube is the largest service provider in Japan for Web-delivered visual communications. The investment will be used to further optimize the service for access from mobile Internet devices and Netbooks and to stream high-quality video over WiMAX wireless broadband networks.
  
• NeuString (Dubai, UAE) delivers predictive analytics software and consulting services to mobile network operators, helping companies to achieve greater financial performance. The NeuString Optiprizer software allows operators to optimize pricing, reduce leakage and get real-time reporting on operational metrics. The investment from Intel Capital will be used for sales and marketing build-out and new product development.
  
• Phoenix New Media (Beijing) provides dedicated and comprehensive portals to well-educated Chinese audiences of over 100 million. The portals, which are available on internet and mobile platforms, provide news and information generated from in-depth interviews, commentary columns, and social networks. The key features offered by Phoenix New Media help address Chinese netizens' diverse needs on information, expression, interaction and entertainment.
  

In addition, Onkyo, a Japanese company announced Monday that its board of directors has approved the issuance to Intel Capital of a bond having a face value of approximately $6.6 million, convertible into common shares of Onkyo at Intel Capital's option and a warrant to purchase common shares of Onkyo, Intel said. The convertible bond and the warrant would be issued to Intel Capital in December, subject to compliance with securities procedures and satisfaction of customary closing conditions.

The new deals total approximately $25 million, Intel said.

Intel on Monday disclosed a version of its Xeon processor line optimized for supercomputers and announced a partnership with NEC to develop future supercomputers.

At Supercomputing 2009 in Portland, Ore., Intel unveiled a future version of its "Nehalem-EX" processor optimized for supercomputers. The six-core chip will run at higher speeds than eight-core versions of the Nehalem-EX processors and will offer advantages for supercomputer specific tasks, Intel said in a statement. Intel also refers to supercomputing as high-performance computing, or HPC.

The chip architecture will offer greater memory speeds and capacity and will allow customers to build single computers or "nodes" with up to 256 such processors, according to Intel. This will be available next year, Intel said.

Intel said Monday that four out of every five supercomputers on the Top500 list published Monday are powered by Intel processors.

Intel also announced that it is partnering with Japan's NEC--that country's largest supercomputer vendor--to jointly develop technologies "that will push the boundaries of supercomputing performance," according to a joint statement.

NEC will use the technologies in future supercomputers based on the Intel Xeon processor and other technologies such as AVX (Advanced Vector Extensions), an extension to Intel's x86 instruction set architecture.

AVX will be used with Intel's upcoming Sandy Bridge microarchitecture due in 2011, according to Intel.

"With NEC further innovating on Intel Xeon processor-based systems, Intel is poised to bring Intel Xeon processor performance to an even wider supercomputing audience, " said Richard Dracott, general manager of Intel's High Performance Computing Group, in a statement.

Fumihiko Hisamitsu, general manager of HPC Division at NEC, said: "NEC's substantial experience in the development of vector processing systems...is a natural fit for taking Intel architecture further into new markets."

A vector processor design can perform operations on multiple data elements simultaneously. Intel Xeon chips are good at scalar processing, which handles one data item at a time.

The initial focus of the collaboration will be the development of technology to boost the memory speed and scalability--the latter refers to expanding a system to increase performance or capacity. "Such enhancements are intended to benefit systems targeting not only the very high end of the scientific computing market segment, but also to benefit smaller HPC installations," the two companies said.

NEC will also continue to sell its existing SX vector processor-based products. NEC, for example, currently markets the SX-9 supercomputer.

Advanced Micro Devices is not the only large Intel competitor to rail against Intel's alleged strong-arm tactics.

Nvidia has also complained loudly for years about Intel business practices in the graphics chip market, where Intel commands about 50 percent of the market.

Nvidia is the world's leading supplier of "discrete," or standalone, graphics chips but takes a distant second place in overall market share to Intel, which supplies "integrated" graphics built into the chipsets that accompany all of its processors. Mercury Research estimates the total market for graphics chips, including integrated graphics, at almost $10 billion in 2009.

In the third quarter, Intel had 53 percent of the graphics chip market, up from the 49 percent share in the same period last year, according to Jon Peddie Research, which tracks the graphics chip market. Nvidia took about 24 percent, down from the 28 percent in the third quarter of last year.

These figures get even more lopsided for Intel when the market is segmented into integrated graphics only. "Put your seatbelt on. They've got 80 percent of the notebook integrated market," said Jon Peddie, president of Jon Peddie Research. Though this is a much smaller and more segmented market than overall PC processor market, which was at the center of last week's $1.25 billion settlement between Intel and AMD, it still shows the level of Intel's dominance, according to Peddie.

Nvidia has taken to lampooning Intel. Here, CEO Paul Otellini is the object of satire on Nvidia's 'Intel's Insides' Web site.

(Credit: Nvidia)

Nvidia claims these latter market share figures reflect Intel's "bundling" tactics--the same carrot-and-stick tactics that AMD has cited for years and that were spelled out in a complaint filed by New York's attorney general earlier this month.

Intel is trying to impede competition on two chipset fronts, according to Nvidia. One front is the burgeoning market for chipsets in Netbooks--tiny, inexpensive laptops that are typically priced around $350. In this market, Nvidia sells its Ion chipset, which competes with Intel's integrated graphics product.

"Intel's tactics with Ion have been the most aggressive we've seen from a competitor. They have offered the Atom [a total of three chips] for $25, but when the one-chip Atom is used with Ion, it sells for $45," Nvidia CEO Jen Hsun Huang said in a statement provided to CNET. "A customer can't even choose to resell the chipset and use Ion instead. What's the point of Nvidia getting an Intel bus license if it's impossible to overcome Intel's pricing bundles?" he asked, referring the licensing fee that Nvidia pays Intel.

"We'll keep growing as a company, but further action needs to be taken to protect consumers," Huang said.

Intel disputes this. "He's playing a trick of numbers, said Intel spokesman Chuck Mulloy. "He's giving you a $45 list price--that nobody pays--for a part and then a negotiated price (which is more realistic). He's mixing apples and oranges. We have scrubbed and continue to scrub our pricing practices as it relates to chipsets and processors. It's all above cost. And that meets the legal standard worldwide."

In Netbooks, Nvidia has made some headway this year; its Ion chipset has been used in Netbooks from Hewlett-Packard and Lenovo, among others--and Huang concedes this. But Peddie said Nvidia still faces a formidable challenge. "They're nibbling away it at. But it's a pretty big hill to climb," Peddie said.

In the second front of Nvidia's most hotly-contested feuds with Intel, the former has halted development of chipsets for Intel's new "Nehalem" processor technology (marketed as the Core i series of chips), following a complaint filed by Intel in February--which Nvidia then countered in March. Intel alleged in its motion for a declaratory judgment that the 4-year-old chipset license agreement with Nvidia does not extend to Intel's future-generation processors with "integrated memory controllers," which includes Intel's newest Nehalem Core i processors.

"It's meant to get Nvidia to cease and desist from citing that they have a license," Peddie said. "That's an interesting tactic because if the court rules in favor of keeping Nvidia from saying they have a license, it also creates the burden on the OEMs [PC makers] of not wanting to get in a crossfire between Nvidia and Intel," he said.

Intel again disputes this. "It's not seeking to prevent them from doing anything. For well over a year and including mediation, we argued with Nvidia about their rights under that agreement. And we tried multiple times to reach an agreement. And we could not," Mulloy said. "We asked the court to tell the parties what the agreement means. At the end of that process, we'll work with them and try to figure out what to do next."

Note: Mercury Research numbers were provided by Nvidia.

Now comes the hard part for Advanced Micro Devices. It has to compete with Intel on the merits of its products.

After settling with Intel and walking away with $1.25 billion, how competitive is AMD's silicon? Some experts weigh in.

Two analysts that follow Intel and AMD said separately that AMD won't be competitive until 2011--at the earliest.

"The only chance for reaching any kind of parity is in 2011. They don't have anything on the roadmap until then," said Ashok Kumar, an analyst at Northeast Securities. In the interim, AMD will get by with about one-fifth of the processor market, according to Kumar. But whether AMD can expand its market share beyond this and be profitable--like Intel--isn't clear. "Intel can leave 20 percent of the unit volume for AMD but (AMD) will have to come up with a business model where it can return to profitability based on this."

AMD may have a chance to expand into more profitable segments if it executes well in 2011, according to another analyst. "AMD believes it's on the cusp of another cycle where they will have strong product offerings compared with Intel. I think this happens in 2011," said Nathan Brookwood, the principal at Insight64. "The products are innovative and have tremendous potential," Brookwood said, referring to the particulars of new chip technologies that AMD disclosed at its analyst day on Wednesday.

But these are big ifs. AMD must close a yawning gap with Intel that's not going to get any smaller because of the legal settlement. "Technically, Intel now has a definitive advantage, which may widen," said Roger Kay, president of market researcher Endpoint Technologies. Kay believes that AMD will have trouble keeping up with the feverish pace, referred to as "cadence," that Intel sets as it moves to each successive generation of chip manufacturing technologies--which, in turn, allows Intel to quickly introduce performance and power efficiency improvements in its processors. "AMD tends to be six months to a year behind Intel," Kay said, citing a statement made by AMD CEO Dirk Meyer at the company's analyst meeting on Wednesday. AMD may begin to close the gap more in the future "but there's no telling whether that will happen," Kay said.

Will AMD's 'Fusion' lead to a resurgence?

(Credit: AMD)

And if it doesn't happen, AMD becomes little more than a foil to keep Intel honest. "This settlement is actually proving the very point that Intel wants to keep AMD alive and able to compete at least in some small subset of the market, otherwise Intel will be faced with regulatory issues that they would rather avoid," said Avi Cohen, managing partner at Avian Securities.

AMD's best technology play to avoid this fate is "Fusion," Kay said, referring to a technology that combines the two key processors inside a PC: the main CPU processor and the graphics processor, or GPU. Fusion, however, isn't slated to come to market until 2011, according to the road map that AMD disclosed on Wednesday.

And what about today? Dan Ackerman, a senior editor at CNET Reviews and someone who regularly reviews AMD- and Intel-based laptops, makes an important point about the challenges AMD faces in the here and now: Intel-based laptops not only dominate the high end of the market but the low end, too. "Intel CPUs are found in almost all of the high-end systems (such as Core i7 laptops), and the low-end systems (Atom-powered Netbooks)," he said.

Ackerman said that AMD will be hard pressed to beat Intel head to head. "AMD has some room in to maneuver in the middle of the market--laptops from $600 to $900--but unless they can offer better performance for the same price, or a significant price discount to consumers, it'll be hard for the company to gain additional market share."

Rich Brown, a senior editor for desktops at CNET Reviews echoes Ackerman's sentiment: AMD competes by offering lower prices than Intel, not better performance. "From a tech standpoint, AMD's...desktop chips haven't been competitive since Intel launched Core 2 Duo. Instead, AMD has had to compete on price," Brown said.

The best action plan for AMD is to keep executing on key technologies and hope this eventually translates to market share gains. "AMD is rapidly developing a reputation for timely execution of marquee products/platforms," said Doug Freeman of Broadpoint AmTech in a research note. "AMD revealed that its newer platforms...are on track for [the first half of 2010]," he said, referring AMD's high-end server chip lines.

Advanced Micro Devices CEO Dirk Meyer on Wednesday addressed the latest antitrust lawsuit filed against Intel, saying his company's claims about Intel's alleged illegal behavior have been "ratified" worldwide.

AMD CEO Dirk Meyer addresses analysts on Wednesday.

(Credit: AMD)

"We've said for a long time that our success in the marketplace was hampered by anticompetitive behavior on the part of our competitor [Intel]," Meyer said. "And I think it's clear over the last 12 months that we've seen our statements be ratified...by regulators around the world. We've seen action in the EU take place this year. And just last week we saw the action of New York State's attorney general office," he said.

Meyer made the comments at the AMD Financial Analyst Day, which was streamed live from company headquarters in Sunnyvale, Calif.

"As you know, we have a court date scheduled in March," Meyer said. "So, in summary, I'm looking forward to a future in which our ability to succeed as a business is really governed by the quality of our products and the quality of our customer relationships. And I can tell you that hasn't always been true. But in the future that will be increasingly true. So, access to customer demand is key. "

Intel declined to comment.

New York Attorney General Andrew M. Cuomo filed a federal lawsuit against Intel earlier this month accusing it of paying computer makers rebates to illegally maintain its monopoly power and preventing AMD from gaining business with PC makers.

In a similar case earlier this year, the European Commission fined Intel $1.45 billion, alleging illegal rebates to PC makers such as Dell and Hewlett-Packard. AMD also made analogous allegations in its case filed against Intel in June 2005 that is slated to come to trial in March 2010.

And this may not be the last major case filed against Intel that makes these allegations. The Federal Trade Commission may also bring charges against Intel, according to reports.

Despite persistent rumors, Nvidia's chief executive says the graphics chip supplier is not working on an Intel-compatible chip.

Nvidia CEO Jen-Hsun Huang

(Credit: Nvidia)

In an exclusive interview with CNET Thursday, I asked CEO Jen-Hsun Huang about the possibility of Nvidia coming up with its own x86 (Intel-compatible) chip technology, after the company reported strong third-quarter earnings. A recurring rumor has it that Nvidia is developing a chip that would be able to run the same software that runs on all Intel- and AMD-based PCs worldwide.

"No," he said when asked if there was any truth to the rumor. "Nvidia's strategy is very, very clear. I'm very straightforward about it. Right now, more than ever, we have to focus on visual and parallel computing."

Huang went on to describe where the chip supplier sees its best opportunities for growth. "Our strategy is to proliferate the GPU (graphics processing unit) into all kinds of platforms for growth," he said. "GPUs in servers for parallel computing, for supercomputing--and cloud computing with our GPU is a fabulous growth opportunity--and streaming video."

"And also getting our GPUs into the lowest power platforms we can imagine and driving mobile computing with it," Huang added, referring to its Tegra chip, which, for example, powers Microsoft's Zune HD media player.

Despite Huang's denials, Doug Freedman of Broadpoint AmTech is the latest to postulate that Nvidia will enter the x86 central processing unit market. "We feel Nvidia could become a supplier of x86 CPUs by necessity, perhaps in the next 12 months (if not sooner) to preserve both GPU and chipset revenue," Freedman said in a note recently.

"We believe the company has hired former Transmeta staff extensively," Freedman said. Transmeta was at one time a low-power x86-compatible chip supplier. Earlier this year, Intellectual Ventures acquired the patent portfolio of Transmeta.

Huang also dismissed the the possibility of Nvidia using Globalfoundries as a manufacturing partner--typically referred to as a "foundry" or a "fab"--for its chips, after saying in the earnings conference call that Nvidia's longstanding foundry partner--Taiwan Semiconductor Manufacturing Company (TSMC)--was not allocating it enough capacity.

"Globalfoundries is an AMD fab, right?" he said. "Globalfoundries is AMD's fab. Our strategy is TSMC."

Experts say Intel has been instrumental in driving down PC prices, one of the key indicators of competition and one charge New York's Attorney General cannot easily level against Intel in its antitrust lawsuit.

New York Attorney General Andrew M. Cuomo on Wednesday filed a federal lawsuit against Intel accusing it of paying computer makers rebates to illegally maintain its monopoly power and preventing AMD from gaining business with PC makers.

One of the operative charges in the complaint centers on prices. "Intel launched an illegal campaign to deprive AMD of distribution channels and consumers of product choice and lower prices," the complaint alleges.

Not so fast, say some experts. "Prices are falling, buyers are not complaining about Intel's loyalty discounts, and the lower prices produce obvious and immediate benefit for consumers," said Joshua D. Wright, professor at George Mason University School of Law, and a scholar in residence at the Federal Trade Commission until 2008.

"Given the intuitive and easy to grasp nature of the consumer benefits of discounting contracts in the Intel case, I suspect that judges will be less likely to condemn these practices without real proof of actual consumer harm. I'm skeptical that AMD, (New York), or the (Federal Trade Commission) will be able to produce that here," Wright said.

And prices continue to fall. One of the most recent examples of steep downward PC price pressure is ... Read more