SANTA CLARA, Calif. -- Intel Corp. is entirely reworking the 1.13-GHz Pentium III processor, delaying the high-speed MPU until the second quarter of 2001.

All of Intel's 0.18-micron Pentium III line is undergoing a new core "stepping," or manufacturing revision, according to a product change notification notice sent out by Intel and obtained by TechWeb.

A second, newer version will be used to fabricate the new 1.13-GHz chip, an Intel spokesman said.

Such "steppings" are uncommon, although expected through the course of a chip's life. New steppings are usually used to fix errata in the chips, or allow those chips to run at higher speeds.

What is unusual, said industry sources, is that the new steppings are usually planned to prevent an interruption in the steady introduction of faster clock speeds.

Intel announced "limited production volumes" of the 1.13-GHz Pentium III in July, in a war of press releases the company has waged with rival Advanced Micro Devices Inc. However, Intel pulled the plug on the 1.13-GHz chip at the end of August after noting an intermittent glitch that could result in data loss (see Aug. 28 story).

Observers said the delay makes sense, given that Intel had already made what hay it could with the announcement of the chip. "Why bother jumping through hoops with a part that was going to be released in limited availability?" one analyst asked.

All of the Pentium III microprocessors from 800-MHz on up will be affected by the so-called "C0" stepping, which has been in circulation for some time now, albeit in sample form.

The C0 stepping shrinks the Pentium III's die size by 5%, also correcting some latent errata.

Intel's plan is to release the new 1.13-GHz chip in a "flip-chip" FC-PGA package only, which will use an entirely new stepping, the Intel spokesman said without elaboration.

The chip will still apparently be manufactured upon an 0.18-micron process. A second 1.13-GHz chip, the Coppermine-T, is expected a quarter later, according to sources and other published reports, but will use a finer 0.13-micron process.

The delay will also provide a neat segmentation between the Pentium III and Pentium 4.

While the Pentium 4 is expected to ramp from 1.4-GHz and 1.5-GHz at its launch Nov. 20 upwards to about 2.0-GHz in the second quarter of next year, OEMs aren't clear on the minimum speed of the Pentium 4 at the time.

What this means is that there might be a sizeable gap between a 1.13-GHz Pentium III and a 1.4-GHz Pentium 4, if it still exists.

"Certainly our focus is the Pentium 4," the Intel spokesman said. "The way I look at is by market segment. Here's a 1.4-GHz for consumer enthusiasts and business power users, and it's the fastest thing since a 1-GHz Pentium III."

Before the Pentium 4's launch, AMD will attempt to cut into Intel's lead. The launch of the 1.2-GHz Athlon desktop processor and the 800-MHz Duron are expected soon; according to one unconfirmed source, and the chip is scheduled to be announced before Oct. 30, the day of the original release of the Pentium 4.

The chips have shown up on Pricewatch.com and other online retailers for $109 and $519, respectively, on an individual basis; a 1-GHz Athlon now sells for about $300.

A spokesman for AMD in Sunnyvale, Calif., would say only that the chips are expected "shortly."