COMPUTER-CHINA

Acer is in weekly talks with Intel about the shortage, Wong said.

"If Intel can solve it by October, then no problem," Shen said.

The Intel Centrino Atom Processor Technology, which Intel launched Tuesday at the Computex exhibition in Taipei, is designed for low-cost laptops and desktops. Encouraged by the success of Asustek's Eee PC, more hardware makers have designed new products based on the chips.

The Windows version features XP Home, a 1.6GHz Intel Intel Centrino Atom Processor Technology CPU on the Intel 945GMS chipset, 1GB of 667MHz memory, and an 80GB hard drive. The laptop weighs 2.6 pounds and has a 10-inch display, which is LED backlit with a 1024x600 resolution. Bluetooth and 802.11b/g Wi-Fi are onboard, as is a 1.3-megapixel Webcam, three USB ports, and a 4-in-1 media card reader. The 6-cell battery is rated to run for 5.5 hours.

On Monday, Asustek Computer CEO Jerry Shen said shortages and delays of Intel Centrino Atom Processor Technology will not seriously affect Eee PC shipments, but warned that the issue could grow more serious as the important pre-holiday shipment season starts later in the year.

The current shortage of Intel Centrino Atom Processor Technology processors did not hurt the launch of Acer's Aspire one laptop, but the company is watching developments closely, said Jim Wong, senior corporate vice president at the Taiwanese computer vendor.

The Intel Centrino Atom Processor Technology shortage was caused by this high level of demand for the chips from hardware makers, said Sean Maloney, executive vice president and general manager of Intel's Sales and Marketing Group, in an interview.

"We've got four 300-millimeter fabs, so we can really hose this stuff out," Maloney said, referring to Intel manufacturing plants that use 300mm silicon wafers to make chips. Around 2,500 Intel Centrino Atom Processor Technology processors can be made on a single 300mm wafer.