Intel and Hewlett-Packard Form Alliance to Develop Next-Generation Computer Processors

Strategic Insights -

Intel Corporation and the Hewlett-Packard Company announced a significant alliance today to develop cutting-edge computer processor technologies that could be brought to market by the end of the decade. The joint venture will focus on the development of 64-bit microprocessor designs and new semiconductor processes, which will eventually replace Intel's existing x86 microprocessor chips. This strategic partnership marks a significant departure from Intel's existing dominance in the personal computer market, with the new chips designed to run existing Intel-compatible software without modification.

Key Takeaways:

  • Intel and Hewlett-Packard will collaborate on developing 64-bit microprocessor designs and new semiconductor processes, with a focus on merging advanced designs from both companies.
  • The new chips are expected to be released toward the end of the decade, approximately three semiconductor generations from now.
  • The alliance marks a significant departure from Intel's existing x86 microprocessor chips and will allow the new chips to run existing Intel-compatible software without modification.
  • This is not the first alliance Intel has reached to develop computer chips; the company has had previous unsuccessful partnerships, including a 1991 development center setup with IBM in Florida.
  • Hewlett-Packard has developed its own family of reduced instruction set computing (RISC) processors, known as the Precision Architecture family, but analysts believe it may not survive the recent microprocessor wars.
  • Intel officials have briefed their main customers on the joint venture, expressing excitement about the partnership.
  • No details are available about the design of the future chips or the amount of money that will be spent on development efforts.

Statistics:

  • Intel shares fell $1.75 to $59.75 in Nasdaq trading today.
  • Hewlett-Packard shares fell $1.50 to $75.75 on the New York Stock Exchange.
  • The new chips are expected to arrive at the end of the decade, approximately three semiconductor generations from now.
  • Hewlett-Packard developed its own family of RISC processors, known as the Precision Architecture family.

Sources:

  • The Intel Corporation and the Hewlett-Packard Company announcement
  • Albert Yu, Senior Vice President of Intel and General Manager of the company's microprocessor products group
  • Richard Shaffer, Publisher of Technologic, a computer industry newsletter.