Intel to ship new chipsets in mid-February

Intel expects to begin shipping new chipsets in mid-February - sooner than expected - for use with its Sandy Bridge processors, following a design defect found last month.

Intel had announced last week that it had discovered a flaw in a chipset used with its new Sandy Bridge processors and put a hold on shipments.

But Intel said on Monday that after consulting with PC manufacturers, it now plans to resume shipments of the current flawed chipsets for use in some PC system configurations that are not impacted by the design defect.

"Under certain configurations, known configurations that work, they'll begin shipping again. We'll release the parts under those conditions," said Intel spokesman Chuck Mulloy.

For Intel, the world's largest chipmaker, the design flaw has been another distraction at a time when it faces sluggish personal computer sales and a major challenge from the exploding popularity of mobile devices, a market dominated by Britain's ARM Holdings.

Intel had previously said it would deliver a new version of the chipset in late February.

It said the resumption of shipments would not affect first-quarter and 2011 guidance given by the company last week when the flaw was announced.

Intel cut its first-quarter revenue forecast by US$300 million and expects the total cost to repair and replace the chip to be about US$700 million. Full-year revenue appears unaffected.

(Reporting by Noel Randewich; Editing by Bernard Orr).