Net-ward Bound

The computing world of yester day is increasingly getting connected through

the Internet and millions of other networks. In such a scenario, chip giant

Intel can sustain the marketshare it has enjoyed in the processor market so far,

only by expanding into everything that is touched by the Internet. The

transformation of the giant–from a microprocessor manufacturer for computing

devices to building block supplier for client, networking and server products,

is complete. The challenge for Intel is to keep up its image of one that churns

better products faster in other areas too. How is Intel preparing for this

challenge?

Paranoia has constantly forced the leader to explore. As a result, not only

has it succeeded in maintaining its leadership, but in growing further as well.

The PC is the longest living product in the technology industry and yet, it

shows no signs of aging. And Intel understands that leadership can be maintained

only when it takes the silicon out of the box and into other devices. This

philosophy has been strengthened by the Internet era of convergence and

interconnectivity.

Like most tech companies, Intel too has been hit by the recession. Global PC

sales have plunged for the first time in years. Speaking about the current

recession at the Intel Developer Forum held in late February, Intel chief

executive officer Craig Barrett pointed out the eight peaks and troughs the

semiconductor industry has witnessed since 1973. At the IDF, Intel announced its

strategy to be the leader in building blocks for computing and telecommunication

products in the post-recession Internet era.

Despite the mess the Internet created in 2001, Intel is confident that the

Internet will scale the next peak. As Barrett explained, "Every enabling

technology has to go through the cycle that starts with irrational exuberance

and experiences a turbulent period before it begins its sustained growth. And

soon, the Internet too, will attain its sustained growth phase."

On several occasions at the IDF, Intel showcased how it is preparing itself

and the silicon for the next peak the semiconductor industry is about to

witness.

To begin with, it put to rest all speculations on Moore’s Law reaching its

saturation level. "Moore’s Law will remain strong for another 25

years," declared Intel’s first chief technology officer Patrick Gelsinger.

Fifteen years from now, the microprocessor spec would read–30GHz clock speed,

containing two billion transistors, running a trillion instruction per second,

built on 300mm wafers using 10nm technology.

Intel is aware that it cannot win customers by announcing higher speeds on

smaller chips any more. As PCs increase their efficiency and take new roles,

similar capabilities are being transformed into myriad devices, where Intel

needs to be present. In the Internet era, the three areas where Intel will find

itself offering building blocks are client, networking and servers. Gelsinger

therefore points out that Moore’s law should not only extend to, but also

expand into other areas. And Intel must drive silicon to take Moore’s Law into

the networking and telecommunication sectors.

The increasing usage of the Internet means Intel will strengthen its

participation in offering communication processors. Intel has termed Gigabit

Ethernet and dual band 802.11 as post-recessionary technologies.

As market demand for better connectivity increases, Intel plans to offer

products with better technologies for all stages in the future. Another area

where Intel is making an impact is wireless data and processor chips. Intel’s

flash memory is increasing its stronghold in cellulars and handhelds. It has

tied up with Microsoft to develop reference designs for smart phones and PDAs

based on Intel PCA, Microsoft Pocket PC and Smartphone 2002.

It is clear that besides Moore’s Law, the next big guiding trend for Intel

in the coming years would be connectivity. All of Intel’s efforts would be to

offer better connectivity capability in each product it introduces.

If Intel’s plans are to come true, soon, every single microprocessor

manufactured would have radio capabilities embedded in it. Convergence takes on

a new meaning when the leader decides to be present in all segments. Intel will

no longer be known as the chip giant, but the giant that supplies building

blocks to everything that has to do with the Net.

Manoj Chandran in San Francisco