South-Western - Management  
Intel to Overhaul Chip Architecture
Topic Technology, Innovation and Change
Key Words Intel, chip, computers
News Story

Beginning August 23, the Intel Developer Forum in San Francisco will introduce a new chip architecture to compete with advances in computer design. Intel currently manufactures the calculating engines inside 80 percent of the chips used in PCs. Its new chip architecture will improve power consumption, thus extending the battery life in laptop computers, as well as conserve electricity. (The development is similar to automakers producing more fuel-efficient engines in response to gas prices.)

Additionally, Intel is focusing on multicore chip technology, which is the equivalent of two or more computing engines on each chip with an emphasis on performance per watt. The new chip architecture should arrive in computers in approximately 18 months. Intel also announced plans to launch products specifically designed for computer security and health care.

Questions
1.

As financial manager of a mid-size company, would you regularly invest in upgrading your company's computer technology? List the advantages and disadvantages of investing company money to be on the cutting edge of technology. What factors did you consider in your decision?

2.

Research technology in your text. What is the connection between technology, productivity and production costs?

Source "Intel to Overhaul Chip Architecture," Wall Street Journal Online, Aug. 12, 2005.
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