As first reported on the 'VNU Newswire' in spring this year, Compaq will use AMD chips with the launch of a new range, now slated for 8 January next year.
Although AMD officials refused to either confirm or deny the story, the K6 will appear in both notebooks and Presario desktops.
One source at AMD said: "This is going to happen after a long time in the making".
Joe D'Elia, an analyst at Dataquest UK, said: "We've been telling AMD throughout this year that it needs to win a company like Compaq to give it a chance against Intel."
He said: "If you don't get into the Compaqs of this world, you're never going to be in the pole position."
The machine involved will be a Presario PC but is likely to be a high spec model running the latest version of the K6 chip. That will be shrunk to a .25 micron version in the near future, the source continued.
Yesterday, Compaq said that despite Intel's announcement of a so-called lean client using a 100MHz classic Pentium, it is set to stick with the Net PC specification originally agreed between Microsoft and Intel.
But the AMD insider said that Intel's move into the low end did not worry it. He said: "AMD will use its embedded group to respond to Intel's announcement and we have better answers than it."
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