January 16, 1998 (TAIPEI) -- Microprocessors that are less expensive than those made by Intel Corp., including the AMD K6, are enjoying an increasing market share, especially for low-priced computer-related products.

Some Taiwan-based computer makers are planning to use such less-expensive non-Intel microchips. Low-priced computers have been big sellers worldwide since mid 1997.

In 1998, desktop models priced less than US$1,000 and notebooks priced below US$1,500 are expected to enjoy brisk sales.

Computer makers need to slash production costs to sustain profit margins. One way to reduce costs is to procure less expensive microprocessors, including those made by Cyrix Corp. and Advanced Micro Devices Inc. (AMD).

Cyrix's GXm for notebook computers is witnessing strong sales. Compaq Computer Corp. will use the GXm in a new notebook scheduled to debut in the first half of this year. Compaq expects the model to account for 5 percent of its total notebook PC production.

Clevo Co., First International Computer Inc., Twinhead International Corp., Acer Inc. and other computer makers have finished testing the microprocessor and are developing GXm products.

A spokesman for Tatung Co. said computer makers will increase their purchases of less-expensive non-Intel microprocessors, because they seek to slash the costs of producing low-priced PCs.

A Twinhead executive said that Intel will likely remain the major source of microprocessors for computer makers because it is the undisputed leader of the industry.

However, the competitiveness of cheaper microprocessors from AMD and Cyrix is expected to gain steam, as low-priced computers become more popular. Unless Intel follows the trend and begins selling less-expensive microprocessors, the global microprocessor market is likely to encounter significant changes, the Twinhead executive said.

(Commercial Times, Taiwan)