RPT-CES-UPDATE 1-Intel unveils new microprocessors

Fri Jan 8, 2010 9:55am EST

(Repeating Jan. 7 item)

* Smaller construction process

* Follows planned schedule outlined in past

* Increased speed and abilities (Adds details from CEO address, bylines; previous dateline SAN FRANCISCO)

By Ian Sherr and Gabriel Madway

SAN FRANCISCO/LAS VEGAS, Jan 7 (Reuters) - Intel Corp (INTC.O) released a flurry of new computer chips on Thursday as it seeks to maintain its dominance over rival Advanced Micro Devices Inc (AMD.N) and prepare for an expected rise in demand.

The new microprocessors, designed to power desktop and laptop PCs, are the first of a new generation of chips featuring smaller transistors that Intel said will juice performance and improve energy efficiency.

At the Consumer Electronics Show in Las Vegas, Chief Executive Paul Otellini said the company hopes to capitalize on new opportunities presented by a world of hyper-connected products of every stripe.

"Every electronic device will eventually connect to the Internet," he said.

Otellini demonstrated advances in 3D movies, consumer electronics and personal computers, and plugged the forthcoming "Moorestown" platform for smartphones and mobile devices.

"We're on the cusp of a new era in computing," he said. "An era of personal computing essentially where we have many devices for every person, where computing is increasingly integrated into every aspect of our lives."

He also unveiled a test version of an application store aimed at netbooks, the Intel AppUp Center. Apps in a variety of categories can be downloaded for free or bought through an Intel website, and the company plans to expand it to other products such as PCs, smartphones and TVs.

NEW CHIPS

Intel released new chips ahead of arch-foe AMD, which is not due to field chips featuring the smaller 32-nanometer circuits until 2011.

"The juggernaut is rolling on, if you will," said David Kanter, an analyst with Real World Technologies. "It's important because it's their first 32 nanometer products, but if you're looking at what they're releasing in notebook and desktop, this is where they already have a lead over AMD."

Intel, the world's No. 1 chipmaker, had an 81.5 percent share of the PC and server microprocessor market in the third quarter, according to Mercury Research. AMD had 17.8 percent.

The introduction of the new processors come on the heels of the release of Microsoft Corp's (MSFT.O) new Windows 7 PC operating system software, which Intel expects will prompt consumers and businesses to upgrade to more powerful PCs.

The new processors are the first to include basic graphics capabilities, which the company said will support high-definition video playback and more casual 3D games.

Typically, computers are sold with basic graphics capabilities designed onto separate cards.

Intel also said it is producing chips targeted at automated teller machines as well as medical and communications and other equipment, as the company continues its bid to extend the reach of its chips into new markets.

(Editing by Edwin Chan and Richard Chang)

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