Gateway to use AMD chips

In a big win for Advanced Micro Devices, Gateway has announced plans to start using AMD processors in upcoming personal computers to supplement its use of Intel chips.

Gateway said the move will allow it to broaden its product line and provide users with value-priced PCs without having to compromise performance.

"Both Intel and AMD offer a broad range of high quality and competitively priced product lines," Jim Booth, vice president of Global Materials and Supply Management for Gateway, said in a statement. "We made the decision to take advantage of AMD's offerings to add flexibility to our product line and to give our clients choices."

While Gateway said it will continue to buy the bulk of its microprocessors from Intel, the news is still significant for AMD. In the past year AMD has secured design wins from a handful of big PC vendors who were previously loyal to Intel, including Hewlett-Packard and NEC.

Gateway is the second-largest direct PC vendor after Dell. And Dell is the last of the world's top 10 PC vendors not to use AMD chips, AMD spokesman Scott Allen said.

Gateway said it will start shipping PCs powered by AMD microprocessors as early as the second quarter 1999.

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