Otellini: Intel Fuels Long-Term Growth Via Astute Investment

Otellini, who is slated to become Intel's CEO, said the Santa Clara, Calif.-based chip giant can continue to grow, even as rivals languish. He also announced three new processors for Intel's product road map.

Plans call for the company to produce two new dual-core processors—code-named Conroe and Woodcrest—after 2006 and for its Merom notebook processor to be ready in that same time frame, Otellini said.

"Our growth in the last year, and certainly in the last quarter's results, stood in stark contrast from a number of other technology companies," he said. "It really is because we've taken a long-term view of investment and growth. Growth doesn't just happen. You make it happen."

Otellini made his remarks during Intel's annual spring meeting with financial analysts in New York.

Intel turned in a first-quarter profit that beat Wall Street's expectations, even as rivals IBM and Advanced Micro Devices fell short in their earnings reports. Looking ahead, Intel executives said the company is poised to roll out a series of new dual-core processors across its desktop, notebook and server lineups through next year. They also said a growing number of OEMs and system builders have committed to building systems with Intel dual-core chips.

"If you take the sum of dual-core notebook and desktop [designs], that's 250 designs being readied to go to market," said Anand Chandrasekher, vice president and director of Intel's sales and marketing group. "We'll be able to drive the penetration rate of dual core going into 2006."

David Chang, president of Agama Systems, a Houston system builder that makes Intel- and AMD-based systems, said he will offer dual-core systems based on both platforms in the next year. He credited the AMD Athlon64 platforms for pushing Intel into the higher end of the market. AMD launched its dual-core Opteron server processors last month.

"If Intel doesn't have AMD pushing it, I don't think Intel would come out with 64-bit and dual core so fast," Chang said. "If Intel doesn't have a solution like AMD's, people are going to start using AMD."