Intel's New Processors May Merge Two Functions

Mar 29, 08:02 AM

Current Headlines: By Michelle Kessler

SAN FRANCISCO -- Intel on Wednesday announced plans for a new processor line that could change the way some PCs are made and put the squeeze on rivals.

The No. 1 chipmaker's new processors, or computer "brains," may contain two features that are usually separate parts. One is a graphics processor, needed to view high-quality images on a PC screen. The other is a memory controller, which controls the flow of data to and from the processor.

Intel hasn't yet announced model details of the processors, expected next year. But the all-in-one capability will likely allow Intel to make extremely efficient, low-powered chips, says Senior Vice President Pat Gelsinger. That may lead to increasingly smaller laptops.

It might also allow Intel to steal business from rivals. Intel already makes graphics components. So do several other companies, including Nvidia, ATI Technologies and VIA Technologies. When graphics are a separate part, it's possible to combine an Intel processor with an Nvidia chip. That's not an option with an all-in-one processor, giving Intel a bigger chunk of the money that PC makers spend on components.

Intel's chief rival, Advanced Micro Devices, is moving in the same direction. AMD bought ATI last year and expects to introduce a processor-graphics combination chip in 2009. AMD has included memory controllers with processors since 2002.

But don't expect the market for stand-alone graphics chips to disappear, says semiconductor analyst Dean McCarron at Mercury Research. Intel's current graphics products focus on the mid- to low-end, and that's not expected to change, he says. Plus, stand-alone graphics chips are generally higher quality, he says. They're a must for video game and media PCs.

Analysts are also wondering if Intel will soon come out with its own stand-alone high-end graphics chip. "The world is waiting for Intel to drop the other shoe," says chip analyst Jon Peddie at Jon Peddie Research. (c) Copyright 2005 USA TODAY, a division of Gannett Co. Inc.