SAN FRANCISCO (Reuters) - Computer maker Gateway will phase out using microprocessors from Advanced Micro Devices and instead use those from Intel , the world's largest semiconductor maker, as the PC maker seeks to cut costs in the face of weak demand.
The San Diego, California-based company confirmed on Tuesday that it was making the move to Intel, whose chips it already uses, by eliminating its Gateway Select line, which used AMD's Athlon processors. Gateway has struggled with waning PC demand and has withdrawn from non-U.S. markets, a move it announced in the summer.
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"This is all part of Gateway's efforts to simplify our product line and to reduce the number of component suppliers we use," said Gateway spokeswoman Lisa Emard.
The move will help Gateway to cut engineering and manufacturing costs. As rivals Hewlett-Packard and Compaq Computer are seeking to merge, Gateway has said it has no plans to be bought by a larger rival.
Gateway has already cut a quarter of its workforce and is in the midst of restructuring into a U.S. business focused on selling PC-based "solutions" of high-speed Internet, home wireless networks and other add-ons that it has said consumers want but are frightened by.
A spokesman for AMD confirmed Gateway's move to stop using its microprocessors, but added that it will continue to compete for Gateway's business.
AMD separately on Tuesday said it would cut about 15 percent of its work force and shut two chipmaking plants.
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