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Intel Unveils New Chips, Business Ad Campaign

SAN FRANCISCO (Reuters) - Intel Corp., the world's largest computer chipmaker, unveiled on Monday new processors for computer workstations and laptops and the launch of its largest-ever multimillion-dollar advertising campaign targeted specifically at the business computing market.

The new Xeon chips, available at speeds up to 1.7 gigahertz, will use Intel's (NasdaqNM:INTC - news) NetBurst microarchitecture, which it said boosts performance for such functions as video, audio, advanced Internet technology and three-dimensional graphics.

Workstation makers such as NEC Corp. (6701.T), Fujitsu Ltd. (6702.T) and International Business Machines Corp. (NYSE:IBM - news) will begin shipping systems using the new Xeon chips before the end of the second quarter.

Intel also unveiled a series of power-saving chips for ultra-light laptop PCs, including a 750 MHz mobile Pentium III processor that, operating in the battery-saving mode at 500 MHz, consumes less than one watt of power.

Intel is facing increased competition from rivals, including processor design company Transmeta Corp (news - web sites). (NasdaqNM:TMTA - news), in power-saving chips for the fast-growing market for ultra-light notebook computers. Low power consumption extends the battery life of portable PCs.

The ad campaign, which Intel said is in the ``tens of millions of dollars,'' is the biggest-ever targeted at large businesses that need high-performance server computers to run their networks, databases and internal and external Web sites and will include advertisements in print media, on billboards and on the Web.

Playing off the word microprocessor, which is the central computing engine of personal computers, laptop PCs and server computers, Intel is launching the campaign under the term ''Macroprocessing,'' highlighting what it maintains as the importance of ultra-powerful chips in business computing.

``Intel is playing in a new field,'' said Jeffrey J Hewett, principal analyst with Gartner Dataquest, of Intel's entry into high-end computing now dominated by Sun Microsystems Inc., IBM, Hewlett-Packard Co. and others that sell systems based on variants of the Unix (news - web sites) operating system.

``In the meantime, today the desktop (PC) world is very saturated and the PC space as a business has been suffering.'' Hewett said.

``To crack that upper end market won't be easy,'' Hewett said. ''Do I think they're going to crack it right now? Maybe a little bit, but it's not going to be as easy a move as they want to think right now.''

Earlier Stories
Intel Unveils Processors for Workstations (May 21)

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