BUSINESSWEEK ONLINE : MARCH 13, 2000 ISSUE
COVER STORY THE NEW INTEL Still the heart of Intel's business, processors and companion chips for PCs and servers contributed 90% of revenues and 100% of profits in 1999. Analysts figure Intel's microprocessor business will account for less than 80% of total revenues in a couple of years. DATA: ROBERTSON STEPHENS, SEMICONDUCTOR INDUSTRY ASSN. THE BOSS Paul Otellini, 49, essentially No.3 in the company, runs Intel's worldwide processor group. He's seen as a possible successor to Barrett. PRODUCTS Pentium III and Celeron processors for desktop and mobile PCs; Xeon processors for servers and workstations. In the second half of this year, Intel will deliver its first 64-bit processor, called Itanium, which will help it grab more of the market for big corporate data systems. And it's about to introduce a gigabit chip, the fastest ever. HOW INTEL STACKS UP Intel still has 84% market share in PC processors. But rival Advanced Micro Devices has hit big with its Athlon chip and Taiwan's Via also is coming on strong since buying the Cyrix processor from National Semiconductor. ACQUISITION HELP Intel has made a few small acquisitions for its core business, such as graphics chipmaker Chips & Technologies and multiprocessing expert Corollary. MARKET GROWTH The microprocessor sector just isn't the rocket ship it used to be. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The New Intel COVER IMAGE: The New Intel TABLE: Intel's Path beyond the PC TABLE: The New Intel: Computer Processors TABLE: The New Intel: Networking Chips TABLE: The New Intel: Communication Products TABLE: The New Intel: New Businesses TABLE: The New Intel: Information Appliances The Thrill of ``Clawing for Market Share'' Is Back (extended) ONLINE ORIGINAL: Intel Investors May Need a Bit of Paranoia INTERACT E-Mail to Business Week Online

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