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Author: 88tracer One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76  
Subject: Another Intel Meeting Report Date: 5/19/2000 5:30 PM
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I thought I'd add to what mshorts had to say about the Intel Annual Shareholder Meeting. His post is at http://boards.fool.com/Message.asp?id=1140069003689000&sort=id.

The meeting had several hundered people at the Santa Clara Convention Center. After the opening by Dr. Grove and the obligatory readings (by Tom Dunlap), Dr. Grove spoke again.

On Strategy:

Dr. Grove mentioned that the Internet is growing exponentially, so that Intel is going to benefit a lot as it works to supply components that move the data through it (the Internet). He commented on the shift in strategy: in 1995 Intel was working on more powerful processors (for multimedia applications on the PC), while now Intel is working on chips to guide the information flow the whole way (to, from, and including) the PC and the destination (server).

The line of products has gotten much more diversified. In addition to the processors, chipsets, and motherboards that they had in 1997, they now also have consumer products (the microscope and camera), much more networking equipment and components, communication equipment (cellular phone and other wireless components, modems, and fiber optic components), and internet services.

I was surprised to see Intel hubs, switches, and routers up on the stage. Does anyone know if this means Intel is going head-to-head with the likes of Cisco? geoffchase (a MF community member) speculated that while Intel sells chips to Cisco, Cisco may be selling these hubs, switches, etc. to Intel. I don't know enough about what these products look like to tell if Intel's are identical to Cisco's.

Due to the product line diversification, they have added many more customers beyond the PC makers (Dell, Compaq, Hewlett Packard, IBM) that pretty much made up all of their customers 3 years ago. Some of the new ones include Google, Cisco, Yahoo!, Nortel, Nokia, Akami, Commerce One, and Exodus.

To elaborate a bit on what mshorts already posted about the Internet's running on Silicon (Si), I was considering asking about other things like optical computing. There was mention of the optical switch maker Giga that Intel aquired. Also, a shareholder asked about chemical and optical computing, and Barrett replied that they see at least 15 more years of growth in Si, and they are keeping their eyes open on all other forms of computing. Hard to say from his answer if Intel is looking into things besides Si, or if they don't consider Si (their core business) to be threatened at this time. Of course, they were stressing the growth of other areas besides Si through the whole meeting.

Some stuff Craig Barrett had to say:

Demand is very strong. Exports are increasing. Less than 40% of business is domestic; so greater than 60% is overseas.

Their wireless products production (chips for cell. phones and handheld computers) is maxed out right now. In fact, all of their core (Si) business is maxed out right now, so they are working on increasing their manufacturing capacity. They are still ramping up 0.18 um technology, and are going to start up 0.15 um in the middle of 2001.

Intel is getting into supplying all of the hardware and software for the web. This has to do with the server farms they are building now.

That's about all my notes had!

Sean

Goodies: We had fruit, danishes, coffee, and orange juice before the meeting. We got maze pens: there are little steel balls that you can manipulate from one end of the pen to the other by orienting the pen in different directions (letting gravity move the balls).
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