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

To: Paul Engel who wrote (108497)	8/26/2000 8:39:27 PM
From: puborectalis	Read Replies (1) \| Respond to of 186894

You tell him,Paul!..................... Inside Intel's plans for the future By Steven Musil Staff Writer, CNET News.com August 26, 2000, 6:00 a.m. PT Intel stole the spotlight this week, showing off new chips for cell phones and handheld computers, talking strategy and predicting a rival's doom. Intel released details on the Pentium 4 and showcased new chips for cell phones and handheld computers. The Pentium 4 features a completely new architecture called "NetBurst" designed to handle tasks--such as data encryption, video compression or Napster-like peer-to-peer networking--that have grown in popularity with the Internet. The upcoming Pentium 4 will be more than twice as big as the Pentium III and approximately 28 percent bigger than anticipated, an increase that will boost Intel's manufacturing cost and limit the number of chips produced. Most initial Itanium chips will run at 733 MHz, slower than the 800 MHz expected, but there are a host of other high-end computer products to compensate for the disappointment. The chip's speed is a lesser factor than architectural improvements such as the 64-bit design that allows it to hold vast databases within memory. But the slower speed indicates difficulties with the manufacturing process for the large new chip. Intel will ratchet up the speed of its high-end Xeon chips to 1 GHz, which has more psychological value than practical utility because of bottlenecks talking to memory and other components in a computer. Xeons are used primarily in servers, the computers that are the brains of computer networks. Intel executives predict the peer-to-peer technology popularized by Napster could usher in the next wave of the Internet and, in the process, save companies billions of dollars by using computing power already in place. The chip giant and others have invested $9 million in a start-up that will make chips for the upcoming InfiniBand technology for high-speed connections among servers, storage systems and networks. Intel CEO Craig Barrett compared Sun Microsystems to communism, saying the server maker represents an increasingly outmoded way of doing business because it locks corporate customers into products or services from a single seller. "If (Sun CEO) Scott McNealy's model worked, communism would still be prevalent and challenging capitalism."