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Intel names new low-cost processor

By James Carbone -- Purchasing, 3/26/1998

Celeron, Intel's new low-cost Pentium II microprocessor designed for the sub $1,000 PC market, will be used in personal computers by mid-year.

Celeron is the beginning of Intel's attempt to extend its reach into the low end of the PC business. Lower-cost machines typically use processors made by AMD or Cyrix, a subsidiary of National Semiconductor.

Celeron will be targeted at PCs costing between $800-$1,200. The chip will have the same core of more expensive Pentium II processors, but won't have the L2 cache memory.

In addition to Celeron brand, Intel, later in the year, will introduce processors for high-end enterprise servers and workstations. Those processors also will have a different brand name.

Celeron chips will be introduced in April and appear in systems in the summer.

Intel also is setting its sights on hand-held devices and set-top boxes with a licensing agreement for the StrongArm processor, a chip used in small, portable equipment. Intel will license the processor from Advanced risc Machines as part of its proposed $700 million acquisition of Digital Equipment Corp.'s semiconductor operations.

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