Who's having chip supply problems?

— 11:53 PM on January 9, 2000

So here's a switch; this News.com story covers how Gateway is expected to announce very soon that they'll be manufacturing PC's based on AMD processors. You will recall that in the past OEM's have shied away from AMD due to supply problems and low yields on their chips. Recently however AMD has been getting lots of OEM attention, both because of the Athlon and the fact that it appears that their yield problems are over.

So why is Gateway expected to go with AMD? Ironically, they seem pretty irate at Intel, due to... yield problems. Chief Executive Jeff Weitzen at least partially blamed Gateway's lower than expected earnings on Intel not being able to get them enough chips. He sounded pretty hacked off about it, too, with quotes like "We're all intensely frustrated by the supply situation we were put in. We're not about to stand by and let the actions of other companies dictate what Gateway products our customers can buy ...." Ouch.

Who would've guessed a year ago that Intel would be drawing fire from computer makers for not supplying enough product, while AMD gets lots of OEM deals after putting their yield problems behind them? Sheesh

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