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September 6, 2005 12:30 AM PDT

Chip shortage forces tablet PC delay

by Michael Singer
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An apparent shortage of Intel chips has caused tablet PC maker Motion Computing to modify its orders for September.

According to an internal memo seen by CNET News.com, Motion's marketing department got word from Intel that there is a world-wide shortage of the Intel Pentium M Processor number 758 which is a low-voltage chip running at 1.5GHz.

"What this means is that existing orders of the Motion LE1600 tablet PC are now scheduled to ship during the first week of October. The current expected ship date for new LE1600 orders is the second week of October," the memo said, noting that Motion was also exploring other alternatives to fill orders.

A representative with Motion Computing confirmed the company's attempts to modify its sales techniques including suggesting Motion Computing's LS800s, which include Intel's 1.2 GHz ultra-low voltage processor--a chip that is not experiencing a delay--and Motion's LE1600 with an Intel Celeron processor.

A representative with Intel declined to comment on any shortage reports citing the chipmaking giant's quiet period in advance of its mid-quarter update this week.

A source close to Intel's workings said the company was at "full capacity" and if there was a shortage, it may just be on a regional basis. Intel's own pricing list shows four different versions of the chip and chipset.

The Pentium LV 758 comes standard with 2 megabits of level-two memory cache, a 1.50 GHz low voltage 400 MHz front size bus and an Intel 915 GM or 915 GMS chipset and Intel-sponsored wireless technology.

Several other tablet PC manufacturers were polled about a reported shortage of the Pentium LV 758, but none returned calls.

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