Intel spending increases $6b, releases CDSA code

Intel Chief Executive Craig Barrett confirmed industry reports that the

company will increase its budget for new plants and equipment beyond the already

strong boost announced earlier. In all, Intel will spend some $6 billion this

year to increase output of its microprocessors and flash memory chips. Intel

also said it plans to release the source code of its Common Data Security

Architecture (CDSA) software allowing developers to add security features to

e-commerce applications.

Already Intel boosted its budget for new plants and equipment from $3.4 to $5

billion. The additional increase reflects Intel's struggle to keep up with

demand of high-end processors. Shortages of Intel components have enabled

competitors like Advanced Micro Devices to develop supplier relationships with

computer makers that previously had purchased only from Intel. Reportedly, AMD

is close to a deal with Dell Computer, the world's second largest PC maker that

has, until now, relied only on Intel for its supply of processors.

"Given the strength in the information technology (IT) economy, we're

liable to see a shortage of semiconductors across the board in the year 2000 and

perhaps next year," Barrett said. About 80 per cent of the $6 billion in chip

investments will go towards increasing manufacturing capacity for computer chips

and the remaining 20 per cent on the production of flash memory chips, Barrett

said. Meanwhile, Barrett said he is not planning to comment on issues related to

the Microsoft-Government antitrust case. "All that we know to date is that

the judge has found Microsoft guilty of anti-competitive behavior. He has not

listed any remedies or structural changes in Microsoft as of yet. I think it's

very premature to comment on the impact that will have on the Internet or

electronic commerce because we really don't know what is going to happen to

Microsoft."

Intel also said it now plans to deliver its Common Data Security Architecture

(CDSA) software to the industry on an Open Source basis, allowing developers to

add security features to e-commerce applications and other software applications

without any additional cost. "One of the most important issues facing the

computer industry is security on the Internet. By providing CDSA software as

open source code, Intel is helping fuel the growth of the Internet, offering the

industry the services needed to build secure e-Business applications," said

Craig Kinnie, Vice President and Director of the Intel Architecture Labs.

CDSA allows applications to gain access to security services like encryption,

biometrics, and the management of digital certificates and authorization

credentials. Software vendors can use CDSA software to add those and other

security capabilities to their software products, instead of developing those

security components themselves. This can cut development costs and accelerate

time to market.

By offering CDSA software as open source, it can be included in the Linux

operating system. Intel and leaders in the Linux community are developing a

64-bit Linux version of the CDSA software to work with Intel's upcoming 64-bit

Itanium (Merced) processor.