Sun to Tap Intel as Additional Chip Supplier

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Computer maker Sun Microsystems Inc. will announce on Monday plans to use microprocessors from No. 1 chip maker Intel Corp., according to a source familiar with the situation, in what would be a blow to Intel’s smaller rival Advanced Micro Devices Inc.

Under the agreement, Sun Microsystems will buy Intel’s Xeon chips to power its servers, in addition to AMD’s Opteron chips that Sun uses, the source said. Sun has scheduled a news conference for Monday morning at a San Francisco hotel but declined to give further details. An Intel spokesman declined to comment.

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