Intel refreshes desktop PC chips

However, the bulk of the speed advantage of Prescott will only become evident in faster versions of the chip to be released later in the year, Intel said.

The world8217;s largest chip maker also said it will cut prices on its desktop chips by between 16 per cent and 33 per cent, following a pattern of its previous product introductions.

Most personal computers makers, including Dell Inc and Hewlett-Packard Co will have PCs with Prescott chips for sale on Monday.

Bill Siu, vice-president and general manager of Intel8217;s desktop platforms group, said the Santa Clara, California-based chip maker designed Prescott to be used in a new form of computer that Intel calls the Entertainment PC, which connects directly to televisions and streams video and audio around the home.

8216;8216;It will be the very logical choice for the next-generation PC platform,8217;8217; Siu said.

Later in the year, Prescott will be teamed with a supporting chip set giving it wireless networking and stereo-quality audio capabilities.

Intel spent heftily on chip-making tools through the recently concluded three-year semi-conductor downturn, giving it the industry8217;s first capability to produce chips with features as small as 90 nanometers, or billionths of a meter, at high volumes.

Prescott will initially be sold at speeds of up to 3.4 gigahertz, or billions of cycles per second, with speeds up to 4 gigahertz by the end of 2004. The 3.4 gigahertz chip will be sold in large quantities for 417 each. Some analysts who closely follow chip technology say they believe Prescott may contain hidden features, including a 64-bit capability, that could be turned on should consumers show an interest in the technology, which offers advantages for heavy-duty software applications like gaming.

-Reuters