Chip giant Intel may still have an overwhelming percentage of the PC processor market but rival AMD is putting up a strong fight. It took a majority of the US retail market - the first time it has outsold Intel - last quarter and looks set to make big inroads into UK PCs too.

Notebook giant Toshiba is now offering AMD processors as part of its retail range, while AMD's latest desktop processors make a strong showing.

The K6-III chip runs at 400MHz, offers a new third level of cache and includes the well-established 3D-Now! graphics instructions, claimed to speed up games. AMD pitches the chip as a PIII beater (see p29).

Meanwhile K6-2 machines, originally pitched against the PII but now seen as Celeron alternatives, continue to sell well. AMD hopes the trend will continue - its 450MHz chip is available in IBM machines, ahead of the Celeron 433 and in advance of Intel's 466MHz offering.

But it's not all good news for AMD. Industry rumour suggests the 450MHz version of the K6-III, supposed to be available shortly after the chip's initial launch, may be delayed. Certainly, although samples should be available to PC manufacturers about now, AMD, perhaps mindful of supply problems which afflicted earlier chips, isn't pushing the new processor as heavily as it promoted previous models. A US lawsuit alleges that the company projected a growth in demand for K6 products and only later revealed supply problems: the growth projections led to an increase in AMD's share price.

AMD: 01276 803100

www.amd.com.