SAN FRANCISCO (Reuters) - Intel Corp. (INTC.O: Quote, Profile, Research) on Tuesday touted a new line of more efficient microprocessors, seeking to bring some sparkle back to a product stable that has come under assault from rival Advanced Micro Devices Inc.
(AMD.N: Quote, Profile, Research).
Acknowledging that the world's top chipmaker is "under tremendous competitive pressure," Chief Technology Officer Justin Rattner said the company was reversing a trend of making chips that guzzle more electricity.
Rattner was speaking at the start of Intel's twice-annual developers' forum in San Francisco, an important venue for the technology bellwether to showcase new products.
The forum was overshadowed somewhat by the company's warning last Friday that revenue in its current quarter would be lower than expected due in part to further loss of market share to AMD.
Intel, which rolled out a new chip for laptops earlier this year, expects to stem those losses when it debuts new processors for desktop PCs and server computers that run corporate networks in the second half of the year.
"AMD's performance advantage is going to narrow in the next 6 months, and it may even reverse," said Nathan Brookwood, head of semiconductor consultancy Insight64.
AMD, once relegated to mimicking advances by its larger rival, has turned the tables in recent years with innovations such as putting two processing cores in a single chip, allowing it to handle multiple tasks more efficiently.
The technological edge has translated into higher market share for AMD, though Intel still outsells it by a ratio of nearly 4 to 1 in desktop PCs and 9 to 1 in laptops.
Intel wants to make clear that the company which invented the microprocessor is not standing still.
Not only is it bringing out new chips, it is producing them using technology that can create circuits just 65 nanometers wide, about 100 times smaller than a blood cell. The smaller scale helps performance and allows Intel to save costs. AMD is expected to move to 65 nanometer later this year.