Intel's Impressive Meeting by Bill Alpert
Summary: At a conference Thursday, Intel (INTC) told analysts that over the next year, it will shifting chip production to transistors with features as small as 45 nanometers, bad news for AMD (AMD), because it will enable Intel to beat it with cheaper or more feature-packed chips. In the last half-year, Intel has been regaining market share from AMD. Cost-cutting measures will trim $3 billion in capital spending over the next two years, and Intel says it can re-use 90% of its last-generation capital equipment for the newer chips, bad news for chip equipment makers Applied Materials Inc. (AMAT), Novellus Systems Inc. (NVLS) and KLA-Tencor Corp. (KLAC). Its Silverthorne ARM chip, due within the year, will be software-compatible with all Intel chips, but require just a quarter of the space and power. Intel ultra mobile manager Anand Chandrasekher says mobile internet will be a $10 billion market for chipmakers by 2011, and he's confident the company's Silverthorne line will beat chips from competitors ARM Holdings (ARMHY), Qualcomm (QCOM) and Texas Instruments (TXN), not least because of their compatibility.