Intel Is Shifting Focus to ‘Dual-Core’ Processors

Computer chip giant Intel Corp. laid out a strategy Tuesday to emphasize production of dual-processor semiconductors, which offer increased computing capabilities with lower power consumption.

Speaking at the twice-yearly Intel Developers Forum, Intel executives said that by the end of next year the world’s largest chip maker would produce mostly “dual-core” chips for computers as diverse as consumer laptops and high-end servers that run corporate networks.

“The implications for the industry are enormous,” said Jon Peddie, president of Jon Peddie Research, a multimedia technology consultancy based in Marin County.

“Having one more processor ... makes all the difference in the world,” allowing PC users to perform such tasks as recording one television show while watching another, Peddie said. Dual-core chips also would allow users to run two operating systems simultaneously.

Santa Clara, Calif.-based Intel has more than 15 dual-core chips under development, and all Intel processors will eventually have two or more cores, executives said in presentations at the forum, a meeting for hardware and software makers to learn what the chip maker is planning.

Intel expects to begin delivering dual-core chips for PCs in the second quarter of this year and server dual-core chips by year-end. By the end of 2006, the company said 70% of its desktop and notebook processors and 85% of its server computer processors in production would be dual-core chips.

Intel and rival chip maker Advanced Micro Devices Inc. are focusing on multi-core technology as the next generation of processors. AMD plans to introduce dual-core chips this year.

“If you want your computer or your entertainment device to do more for you ... and you want a visual experience, to edit data, display data, then you want more processing power and communications capability,” Intel Chief Executive Craig Barrett said after a speech.

“Dual core gives you that,” he said. “It’s the way the industry is

Intel is using this season’s developers forum to highlight its plans for multi-core and other technologies as it tries to shake off a tough 2004, when it canceled, delayed or recalled a number of processors and other silicon products.

Barrett said a recent reorganization, which created several new business units including one focusing on healthcare, would provide momentum for Intel after Barrett retired in May. He will be succeeded by Chief Operating Officer Paul Otellini.

Intel also is directing more investment toward its money-losing mobile phone chip business, Barrett said without providing details.