Intel unmoved by AMD plans

MALAYSIA: Intel Corporation, Chief Executive, Craig Barrett admitted that the world's largest chipmaker was unworried by a new line of super powerful microchips due to be released by nearest rival Advanced Micro Devices (AMD), and had no plans to offer desktop equivalents to protect its market share.

"We have no plans at this stage for a 64-bit address extension like the AMD device for the dektop," he said.

"AMD has embarked on a late-year company strategy, that's fine but I wouldn't trade places with them."

Intel planned to invest in China, India and Russia for "new growth" next year, and would also expand existing facilities in Malaysia and Philippines, he added.

After exciting the stock market with a raised revenue forecast last week, the head of chip giant Intel Corp said on Tuesday it was too early to tell if stronger third quarter demand would last the rest of the year.

"We are seeing a stronger-than-anticipated third quarter," Intel Chief Executive Craig Barrett told Reuters in an interview.

"The question whether the fourth quarter will continue off of that, based on what we said for the third quarter, we don't know yet," said Barrett, who was in northern Penang island to launch a new design centre for Intel's local plant.

Barrett said he did expect a rise in fourth-quarter PC sales due to seasonal demand, but was unsure if the traditional year-end boom would be sharper this year than in 2002.

He also cautioned that the third-quarter rebound seen by Intel should not be taken as a sign the global chip sector was finally shaking off its three-year slump.

"We don't know much of this Q3 is a kickback of a SARS-related spending that didn't happen in Q2," he said in reference to the Secure Acute Respiratory Syndrome virus that hit much of East Asia earlier this year.

Intel derives around 40 percent of its revenues from Asia.

Industry outlooks and earnings guidance from Intel, whose processors are found inside 80 percent of personal computers worldwide, are closely watched by a semiconductor market worth an estimated $150 billion in annual sales.

The Santa Clara, California-based giant had surprised investors last Friday when it raised revenue and profit margin forecasts, but declined to call a definitive recovery for the still struggling industry.

Despite the contradictory stance and analysts' cool response to its optimistic forecasts, Intel shares shot to a 14-month high and lifted technology stocks across the board.

Citing stronger sales and lower production costs, Intel now expects revenue in the July-September period to rise to $7.3 to $7.8 billion, up about 11 percent from the second quarter. It had just last month set a target of $6.9 billion to $7.5 billion.

© Reuters