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Technology Stocks : Intel Corporation (INTC)
INTC 33.62-4.2%3:59 PM EST

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To: Mary Cluney who wrote (40581)11/18/1997 3:06:00 PM
From: Paul Engel  Read Replies (1) of 186894
 
Mary - Re: "What is it about Brian Halla's all in one PC on a chip that Intel objects to"

1. Cost - die size gets big, not just from added functions, but from BIG I/O drivers required to drive a system bus for data and address and control. These large structures eat up real estate - driving up the silicon cost substantially.

2. Product differentiation - While some customers may like the All-In-One approach, many of Intel's customers objected because they could not easily add their distinctive value-added system components.

Items 1 & 2 contributed to Intel discontinuing their 80486SL chip (and 89386SL chip set) which attempted to be all-in-one type chips (but without graphics and audio).

Intel seems going down the path of incorporating the additional PC system functions (audio, graphics, IDE control, etc.) in to the chip set, which is already reduced to one or two chips. This keeps the processor per se streamlined to do processor only functions. Then, customers can buy their choice of chip set from Intel - fully intergrated or partitioned.

In this manner, all of Intel's efforts can go into manufacturing one processor - minimizing cost and expanding performance. The choice of chip sets would then distinguish which market the PC system would be sold into.

Paul
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