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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (108406)	8/25/2000 9:13:45 PM
From: puborectalis	Respond to of 186894

Intel outlines new strategy for communications chip group By Mark LaPedus Semiconductor Business News (08/25/00, 06:07:15 PM EDT) SANTA CLARA, Calif. -- After making a slew of acquisitions in the communications chip market, Intel Corp. this week outlined a cohesive strategy to become a much stronger competitor in this booming segment. The Santa Calif. chip giant has reorganized its data-communications chip operations, revised its branding strategy for the segment, and it disclosed details about next-generation network-processor lines. As part of the moves to make it more efficient, Intel is putting the finishing touches on a plan to consolidate its data-communications chip operations--including the various companies that it acquired over the last year--into four separate groups. In addition, the company plans to leverage its strong brand-name recognition in the marketplace by re-labeling its entire data-communications chip portfolio from "Level One Communications" to the "Intel" logo. The new branding strategy will be in effect in early 2001. And, it also disclosed plans to develop its next-generation network-processor lines, based on its new and innovative XScale architecture. Introduced earlier this week at the Intel Developer Forum (IDF) in San Jose, XScale is an updated version of the StrongArm RISC-based processor line. It will be initially used for hand-held equipment (see Aug. 23 story). These moves are intended to bring Intel's data-communications chip business to the next level. Having entered this market only about 18 months ago, Intel is still learning the ropes in a segment that is growing faster than its core PC microprocessor business in terms of overall percentages, analysts said. "Intel has had some success in the [data-communications chip market]," said analyst Scott Randall of Soundview Technology Group in Stamford, Conn. "But it's safe to say that [this business only] represents less than 10% of the company's overall sales." Executives from Intel claim the company is making major inroads in the market. "We've had huge market acceptance for our IXA [Internet Exchange Architecture] products," said Mark Christensen, vice president and general manager of Intel's Network Communications Group , referring to the company's communications-chip platform. Perhaps the biggest success for Intel is its network-processor line. Introduced early last year, the company's network-processor embeds six 200-MHz, RISC-based engines within a core processor built around its StrongArm MPU architecture. "We started with five customers in our network-processor business," Christensen said. "Now, we have 60 design wins." Hoping to maintain the momentum, Intel has set plans to develop its future network-processor lines based on the XScale architecture. "XScale will take us to the next level," he said in an interview with SBN. "We have many different network-processor products in development based on XScale, but we are not saying if we will introduce them this year or next." Starting early-2001, the company will use the "Intel" brand on its network-processor lines as well as its other data-communication chips. Previously, the company used the "Level One Communications" logo, which was adopted after it acquired communications-chip specialist Level One for $1.2 billion early last year. "We're moving everything to the Intel brand name. There just wasn't much of an edge that Level One had in the market," Christensen said. "We had planned to do that two years after the acquisition, but we decided to accelerate that by one year." In another move, Intel earlier this year began to consolidate its data-communications chip operations--including its recently-acquired companies--into four separate groups: Enterprise Components Division, Telecom Components Division, Network Processing Group, and Platform Networking Group The reorganization, which is nearly completed, is intended to simplify the company's fast-growing organization for employees and customers alike, Christensen explained. "We've organized around our customers' needs,'' he added.