Intel has decided it's time for Rambus memory to stand on its own.
The chipmaker, as expected, has begun efforts to phase out subsidies for PC makers using RDRAM, high-speed memory based on designs by struggling company, Rambus.
Intel says the subsidies, which include a rebate for PC makers and a Pentium 4/RDRAM bundle, are no longer necessary to lower prices and increase availability of RDRAM, which initially was the only memory supported by the Pentium 4.
But analysts see the move as a sign that Intel's support for Rambus is weakening. Within a few weeks, the chip giant is scheduled to release a new chipset that will connect the Pentium 4 with standard, less-expensive SDRAM memory, ending the company's exclusive reliance on Rambus to support its fastest processors.
Most analysts believe the new chipset, dubbed 845, will become the basis for the majority of Pentium 4 PCs sold, with later versions supporting faster double data rate (DDR) DRAM.
"I think that Intel is slowly but surely backing away" from RDRAM, said Kevin Krewell, senior analyst with Instat/MDR (formerly MicroDesign Resources). "When they do finally introduce the DDR version of the 845, they'll get good performance--not as good as RDRAM...but everybody, overall, will be happier."
Intel said the decision to drop the subsidy was prompted by changes in the RDRAM market. RDRAM availability has increased and prices have fallen significantly since the subsidies were started in conjunction with the launch of the Pentium 4 last November.
As a result, subsidies are no longer necessary, said Intel spokesman George Alfs.
Starting last November, Intel offered PC makers a rebate of US$70 for each PC manufactured with a Pentium 4 processor and RDRAM memory. It lowered the rebate to US$60 in the first quarter of 2001 and later extended the program through the end of the second quarter, when it was to be phased out.
Intel also packaged "boxed" Pentium 4 processors for sale at retail and to system integrators with RDRAM. The idea of this program, which included a Pentium 4 processor with two RDRAM chips, was to bundle the chip and memory for a price that was lower than purchasing them separately, thus subsidizing the cost of the memory and helping PC makers ensure adequate supplies of the memory chips.
"We also will be phasing out the bundling program, since RDRAM is widely available in the market," Alfs said.
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