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THE CUTTING EDGE : Intel to Sketch Out Future at Forum : Technology: Company event will draw more than 2,000 hardware and software developers to Palm Springs this week.

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From Bloomberg News

Intel Corp., the world’s largest computer-chip maker, will outline plans for using new memory technology and unveil details about its new Merced chip and network processors at a conference in Palm Springs this week.

Chief Executive Craig Barrett will kick off the Intel Developers Forum on Tuesday. Other executives scheduled to speak include Mark Christensen, head of Intel’s networking group, Patrick Gelsinger of the business products group and John Miner, head of the server business.

Intel will gather with more than 2,000 hardware and software developers in the desert resort to talk about new technologies, challenges for the personal computer industry and its plans for new products.

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Intel launched the annual forum in 1997. At last year’s conference, Santa Clara-based Intel first showed its orange, pyramid-shaped prototype PC of the future. This year, analysts expect more futuristic speculation.

“They are going to be firing on all cylinders,” said analyst Nathan Brookwood of Insight 64, a research firm in Saratoga, Calif.

Barrett is expected to talk about how Intel will benefit from the growth of commerce on the Internet, while Christensen probably will discuss the spate of acquisitions Intel has made in the networking market and the company’s plans for those new businesses. Intel completed its $2.73-billion acquisition of Level One Communications Inc. earlier this month.

Gelsinger said he’ll showcase Intel’s view of future technologies, new designs for PCs and other equipment, and how those will make the Internet easier and more useful for home and corporate users. Several computer makers are expected to unveil plans to start selling PCs that are much smaller and more efficient than today’s models.

“We’ll give a pretty comprehensive view of what the business and home will look like in the not-too-distant future,” Gelsinger said.

Last month, Intel acknowledged that it was considering alternatives to the Rambus Inc. technology it had been supporting for speeding up the performance of memory chips. Intel said it’s evaluating PC-133, which competes with Rambus, and analysts expect the company to talk further about its plans for that technology.

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Speeding memory-chip performance is important because as processors become faster, memory products need to keep up. Intel had been supporting only the Rambus technology, which is more expensive than the alternatives. Rambus shares tumbled 13% the day Intel said it would evaluate other technologies.

“The whole memory industry is waiting on the edge of its chair for what Intel will do,” Brookwood said.

Analysts expect Intel to support some competing standards as a stopgap measure until the Rambus technology is supported by more memory makers and is less costly.

Intel also is expected to give an update on the forthcoming Merced processor, its first 64-bit chip, due in mid-2000. Merced is designed to run the most powerful computers and will compete with products from IBM Corp., Sun Microsystems Inc. and Compaq Computer Corp.

Analysts expect more technical details about how Merced works as well as information about the surrounding chip sets and software. Gelsinger said Intel will show tools for developers and offer technical details and training. Software developers also will show off their operating systems for Merced.

The company also may discuss its plans for network processors, the chips that direct data in big switches from one network to another. Intel said in April that it planned to get into this market, putting it in competition with Lucent Technologies Inc.

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Intel wants to get its chips, already found in more than 85% of new PCs, into the machines that route data around the Internet, a potentially huge business as more companies link to the Web and as the need for faster data transmission increases.

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