BUSINESSWEEK ONLINE : MARCH 13, 2000 ISSUE
COVER STORY

THE NEW INTEL


COMPUTER PROCESSORS 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.
Chart: Microprocessor Market Revenues
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.



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