Two of Intel upcoming chipsets, code-named Lindenhurst and Twin Castle, target at the server market. That directly post a threat to ServerWorks which is the dominant seller in server chipset, according to analysts.

Dell and Hewlett-Packard, the top sellers of servers with Intel processors, have agreed to use Lindenhurst and Twin Castle in their servers to be released next year, according to analysts. In addition, IBM plans to incorporate Lindenhurst into its 2004 models.

Intel promotion on its server chipset seemed to be successful, said an analyst. The company's share of the server chipset market "could reach as high as 25 to 30 percent or more by year-end," according to a source familiar with the matter.

The Twin Castle is a new four-processor chipsets for servers. The company's current E7501 "Plumas" and E7505 "Placer" chipsets are designed, like Lindenhurst, for dual-processor servers.

Twin Castle is built to work with "Potomac," a version of Intel's Xeon MP processor built using a 90-nanometer manufacturing process--the first such chip created for multiprocessor machines. Lindenhurst is paired with Intel's "Nocona" Xeon DP, a 90-nanometer-process chip for dual-processor systems.