AMD launches PDA chip

AMD has made its debut in the mobile computing device market with the launch of a new chip for web pads and personal digital assistants.

The low-power Au1100 processor is a result of AMD's acquisition of Alchemy Semiconductor in February.

The Au1100 is designed to run a variety of operating systems, including Windows CE and Linux, and the performance and power consumption of the chip ranges from 333MHz at less than 200mw to 400MHz at 250mw and 500MHz at 500mw for the production version.

Products containing the chips are expected to appear later this year.

Billy Edwards, vice president and general manager of AMD's newly created Personal Connectivity Solutions group, said: "This market is in its infancy, but we believe it is our highest growth segment.

"Industry analysts say this market has the potential to reach $26bn and 1.3 billion units shipped by 2007. We're excited to be here at the start to foster competition and offer outstanding solutions for our customers.

"In the next decade, we believe there will be a shift from voice centric to data centric mobile information appliances. We are positioning ourselves to be a major player as that shift happens."

But analysts have indicated that the chip maker faces a tough task competing with Intel, whose StrongArm processor is already dominant in the market.

Andy Brown, research manager of mobile computing, Europe, Middle East and Africa, at IDC, said: "AMD's acquisition of Alchemy was made as a springboard into this market. Intel has been there with StrongArm and the simple fact is that AMD has decided it's about time it entered this market.

"Up until now, AMD has spent its time on the PC desktop market and is doing well, but it seems to have gained market share by default, for example when Intel had problems delivering.

"On the mobile side AMD is not taken seriously by the corporate market and has its work cut out. It probably shouldn't bother unless it can come up with something quite serious.

"On the device side it is quite interesting. AMD obviously feels that it now has some competitive low power offerings.

"To what extent it can compete with Intel I don't know. It will be interesting to see where it leads as it has zero presence right now."