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Submission + - Intel's Israelis Make Chip to Rescue Company From

MarvinTM writes: "Ian King — Bloomberg Five hundred employees and guests crowded under a white tent half the length of a football field at Intel Corp.'s Santa Clara, California, headquarters as Chief Executive Officer Paul Otellini put his company's newest line of computer chips through their paces. "These are the best microprocessors we've ever designed, the best microprocessors we've ever built,'' Otellini told the audience. "This is not just incremental change; it's a revolutionary leap.'' Otellini's pronouncement relegated to obsolescence Intel's Pentium chip, which once powered more than 80 percent of the world's personal computers. That wasn't the only surprise last July. A camera zoomed in on engineers in lab coats in Haifa, Israel. The video revealed that the chip Intel is counting on to recover from a battering by Advanced Micro Devices Inc. wasn't invented in Silicon Valley. Instead, Intel is betting on a group of Israeli mavericks and a design bureau 7,400 miles away. Shmuel Eden, former head of the Israel Development Center where the new Core 2 Duo was created, says he's fed up with the perception that Intel's prowess is fading. "They (the Israelis) saved the company,'' Doug Freedman, an analyst in San Francisco for Greenwich, Connecticut-based brokerage American Technology Research, says. "Without those new products, Intel would be in a lot more trouble.'' Otellini's bet on the Israelis required a shift in thinking about how processors work -and how Intel markets them. Intel had always promoted the mantra that faster clock speed, the rate at which a chip executes instructions, was the key to measuring how well a computer performs. FULL ARTICLE: &sid=a2mgYutwVFnM"

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