Intel will delay the launch of chips designed for big-screen televisions, according to a story Monday in
The Financial Times
At the Consumer Electronics Show this January, Intel had
outlined plans to develop chips based on a technology called liquid crystal on silicon, or LCOS, which it said would help cut the cost of big-screen high-definition television sets to less than $2,000 by 2005.
report said Intel chose to delay the launch until it can more clearly differentiate its technology from that offered by competitors such as
, which has had considerable success with its line of digital light processors.
An Intel representative was not immediately available to comment.
The move is the latest in a series of stumbles by the Santa Clara-based leading global chipmaker. Just last month, Chief Executive Craig Barrett dispatched a companywide email asking employees to focus on righting delays and manufacturing problems.
In late July Intel said it would
miss a deadline for shipping its 4-gigahertz version of the Pentium 4 by one quarter. Also last month the company said its new mobile chipset, code-named Alviso, will be
delayed one quarter. In June, it was forced to recall its Grantsdale chipset due to manufacturing glitches, resulting in a $38 million charge to second-quarter earnings.
Also, earlier in the year, the chipmaker delayed Dothan, its Pentium M notebook processor, by one quarter.
So far, analysts have mostly shrugged off the missteps as one-time occurrences but the accretion of screw-ups certainly can't help sentiment on Intel's beleaguered shares, which have lost a third of their value year-to-date as of Friday's close.
In Monday trading shares appeared unaffected by the news, however, gaining 20 cents, or 0.9%, to $21.76.