Intel develops integrated chip

Intel executives, looking forward into next year, have outlined a strategy that includes release of a new "system-on-a-chip", with the code-name "Timna".

In the second half of 2000, Intel plans to come out with the processor, which will integrate the CPU with graphics and memory controllers, said Paul Otellini, head of Intel's Architecture Business Group. The chip will be targeted at low-end PCs, he said.

"This is our first product that is a single-chip PC."

In the same time frame, Intel plans to release its "Willamette" processor for high-performance desktop PCs, running at 1GHz, he said. Otellini provided few details of the chips.

In the first half of next year, Intel's Pentium III processor will run at speeds of 800MHz, and mobile products will run at 700MHz in the first quarter and at 750MHz in the second quarter, he said.

Intel has not been harmed by either year 2000 computer concerns or by the Taiwan earthquake, said Sean Maloney, senior vice president of sales and marketing. "We see demand for all our products is strong," Maloney said. "We don't see demand affected by external supply issues."

Demand is as high as in 1995 and 1996 when the introduction of multimedia products ignited new interest, he said. "We are now growing faster than at any time since the multimedia boom," Maloney said.

In response to the growth of the Internet and e-commerce, Intel is furiously pursuing related markets, including those for networking products and information appliances, said Andy Grove, Intel chairman.

Saying Intel wants to supply the "silicon building blocks" to network communications products, Grove pointed to the company's nine acquisitions, costing $US6 billion, in that area this year.

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