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Edition: U.S. Article Comments (1) Follow Reuters Facebook Twitter RSS YouTube Read Most U.S. voters say "no" to Palin or Trump in 2012 10:39am EDT Bush declines Obama's invitation to "Ground Zero" | 8:26am EDT Instant View: Private sector adds 179,000 jobs in April 8:38am EDT Obama decides not to release bin Laden photos | 4:32pm EDT Teens plead guilty to bullying girl who killed herself 2:40pm EDT Discussed 167 Obama to make statement late Sunday, White House says 119 Concerns raised over shooting of unarmed bin Laden, burial 110 Donald Trump calls U.S. leaders ”stupid” Watched Bin Laden unarmed when killed - White House Tue, May 3 2011 Video of bin Laden compound fire Mon, May 2 2011 Fire ants form rafts to defy floods Tue, Apr 26 2011 Intel's Ivy Bridge chip technology may drive mobile push Tweet Share this By Noel Randewich and Paul Sandle SAN FRANCISCO/LONDON (Reuters) - Intel Corp on Wednesday took the wraps off next-generation technology that crams more transistors onto microchips, betting it will help the chipmaker catch up in the red-hot tablet... Email Print Related News UPDATE 6-Applied Materials to buy Varian Semi for $4.9 bln 12:17pm EDT Intel shares gain, ARM stock sinks as news awaited 11:49am EDT Apple updates iMac line with new processors Tue, May 3 2011 Microsoft stock tumbles after Windows sales dip Fri, Apr 29 2011 Samsung sees tough outlook, Q1 hits 2-yr low on TVs Fri, Apr 29 2011 Analysis & Opinion Deals wrap: Glencore IPO draws key investors Tech wrap: New Apple iMacs built for speed Related Topics Technology » Media » iPad » Stocks A sign is shown at the entrance to the headquarters of Intel Corporation in Santa Clara, California February 2, 2010. Picture taken February 2, 2010. Credit: Reuters/Robert Galbraith By Noel Randewich and Paul Sandle SAN FRANCISCO/LONDON | Wed May 4, 2011 4:23pm EDT SAN FRANCISCO/LONDON (Reuters) - Intel Corp on Wednesday took the wraps off next-generation technology that crams more transistors onto microchips, betting it will help the chipmaker catch up in the red-hot tablet and smartphone market. Intel expects to use the new technology to make PC and server chips, code-named Ivy Bridge, by the end of 2011 and will later use it to make improved processors for mobile devices. The cutting-edge technology -- which Intel says breaks new ground by moving away from flat circuitry to a three-dimensional model -- may eventually challenge rival ARM Holdings, whose chip technology is favored in devices like Apple's iPad. Shares of Intel rose about 2 percent to close at $23.50 while ARM's shares closed down 7.3 percent at 5.58 pounds in London. Santa Clara, California-based Intel's processors are the brains in 80 percent of the world's personal computers but have failed to find their way into smartphones and tablets, and the world's biggest chipmaker is racing to catch up. "This is necessary but not sufficient. There are many other things we need to do," Intel Executive Vice President Dadi Perlmutter told reporters. Some analysts believe Intel's proprietary chip architecture, known as "x86" and originally designed to deliver hefty performance to PCs, is inherently unsuitable for mobile devices where power efficiency is a major factor. Others say that once Intel, with deep pockets to pay for research and development, adjusts its thrust toward energy-efficient processors, its manufacturing technology lead will help it become a serious competitor in smartphones and other mobile gadgets. "With the convergence of PCs, smartphones and tablets, clearly Intel wants to get out of its core PC market. The issue is 'Can they come up with a processor that is sufficiently power efficient to be competitive in the mobile computing space?'" said Adrien Bommelaer, an analyst at Matrix. THE GOLD STANDARD Energy-efficient chips that conserve batteries and are made with technology licensed by ARM are used by Apple, Samsung and Motorola, and have become the industry standard in mobile devices at the expense of Intel. But Intel's manufacturing technology is far ahead of other chip companies, giving it a major advantage in building fast and efficient processors. Since the 1960s, Intel and other semiconductor companies have sunk billions of dollars into research and development, letting them double the number of transistors they can squeeze onto microchips every two years, and paving the way for smaller and faster electronics gadgets. Intel accomplished its latest improvement by turning wide, flat channels that electrons flow through onto their thinner sides so that they can be packed closer together on the silicon chip. Intel said the new 22 nanometer (nm) chips would offer higher performance -- lower line-widths mean more transistors and faster speeds -- and consume less electricity than its current 32 nm chips. Rival chipmakers are at least a year behind Intel in developing similar new technology, analysts said. To further extend its lead in manufacturing technology and help catch up in the mobile race, Intel last month raised its capital spending plan for 2011 to $10.2 billion from $9 billion. The costs of developing and building ever more advanced manufacturing technology are snowballing, but Intel has the deep pockets to continue pushing its technology roadmap, analysts say. "Intel's scientists and engineers have once again reinvented the transistor, this time utilizing the third dimension," said Intel CEO Paul Otellini in a statement. (By Noel Randewich and Paul Sandle, editing by Derek Caney, Bernard Orr and Matthew Lewis) Technology Media iPad Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (1) bikerguy wrote: You better start buying Intel stock. It’s gonna get big. Bigger. May 04, 2011 3:23pm EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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