Intel CEO Sees No Innovation Drought
Intel (INTC) - Get Report Chief Executive Craig Barrett led off a conference for the company's hardware and software developers on Tuesday by stating that the semiconductor industry's driving theory should continue to yield better technology throughout the next decade.
Moore's Law, coined 40 years ago by Intel co-founder Gordon Moore, postulated that the number of transistors on a microchip would double roughly every 24 months. This has held true over the years despite constant concern that the pace of technological advancement could not overcome the laws of physics, as well as the growing difficulties and complexities of chip manufacturing.
"Moore's Law is not slowing down," Barrett said while delivering his final keynote address as Intel's top executive at its semiannual Intel Developer Forum in San Francisco, which is expected to be attended by about 5,000 people. President and COO Paul Otellini will succeed Barrett in May and Barrett will become chairman.
And, Barrett said, he hopes to celebrate the guiding principle's 50th and 60th anniversaries. "That law is the foundation of what we are all about -- innovation and integration," he said.
Barrett's specific product talk was limited, but he said dual-core and multicore processors represent the way of the future for Intel. He also highlighted a virtualization technology that Intel will discuss in depth at the conference and a technology advancement for server platforms called I/O Acceleration Technology.
He showed off two entertainment PCs, one slated for introduction later this year and a smaller, sleeker version planned for 2006. He also pointed out a dual-core based computer designed for the office. All three computers have an emphasis on secure communications and the ability to do multiple tasks simultaneously.
In addition, Barrett showcased atomic-level pictures of transistors using process technology at 45 nanometers, slated for introduction in 2007; at 32 nanometers, slated for 2009; and at 22 nanometers, planned for 2011. "We can see how to continue to do this all the way down to the 5-nanometer range," Barrett said.
Intel and other leading chipmakers are currently making chips on 90 nanometer process technology. Chips that use smaller process technology are faster and more efficient than their predecessors but are also harder to manufacture in high volumes.
Ironically, one of those other chipmakers, rival
AMD
(AMD) - Get Report
, also was holding meetings and briefings regarding strategy and product plans.
"This is not to counter what they are doing," said Andrew Fox, public relations manager for AMD. "We are here to make sure everyone understands what we are doing and that we are on track with our product road map."
AMD led the chipmaking industry with its introduction of chips capable of processing data in chunks of 64 bits and 32 bits simultaneously. It also was in front of Intel in announcing plans to make dual-core processors.
Intel has since added 64-bit extensions to its current lineup of 32-bit compatible chips and it has announced that all of its product lines will transition to a dual and multicore architecture going forward.
Margaret Lewis, in charge of enterprise software strategy for AMD's computation products group, said it doesn't mean that Intel's and AMD's products are the same. She highlighted AMD's redesign of the chip architecture to eliminate bottlenecks from data transfers across a front-side bus.
She said this was just another example of why AMD was down the street from Intel this week. "There is still education that needs to happen," she said.
Intel shares closed Tuesday 2.6% higher, as other semiconductor companies moved higher with the broader market. The sector benefited from a couple of analyst upgrades and relatively bullish comments about improving business prospects for the remainder of the year. Investors can expect to get some firmer data points in the two weeks ahead as companies such as
Novellus Systems
(NVLS)
, Intel,
Texas Instruments
(TXN) - Get Report
,
Xilinx
(XLNX) - Get Report
and
Altera
(ALTR) - Get Report
offer midquarter updates.