Intel

11 Pages 2742 Words

the wireless technologies to develop. They may also be able to someday produce the products that they are supplying the pieces for now. Intel has been a leader in the microchip industry and will continue to prevail with the implementation of a growth strategy that will be explained in further detail.

External Threats
Competitors
The most prominent threat Intel faces is from technological advances achieved by their competitors. AMD, Advanced Microdevices Inc., has became a huge player in the semiconductor market. Most recently, they have developed a chip with a 64-bit processor, hurdling past Intel’s Pentium 4 and Xeon processors which run at 32-bits. This chip is very popular among consumers that use their personal computer for gaming, as well as the computer-intensive artistic software such as Pro Tools and Photoshop. AMD will also benefit from the Brazilian government, which is currently negotiating a $1 billion semiconductor factory built and operated by them. This will give AMD a large presence in an emerging technological market (Business News America 1).
Another competitor, Freescale, is also a step ahead of Intel with their release of the first ever dual-core processor. This has been a gigantic project Intel has been working on, and had hopes of being the inaugural manufacturer for the technology (Lemon 1). Now Freescale can use Intel’s strategy of pricing high until the competition reaches, then cutting the prices which drastically reduces the once desirable profit margins.
Samsung, a company trying venerably to knock off Intel as the number one chip manufacturer, is putting almost $20 billion into R&D throughout 2006, a number far greater than Intel. In 2004 alone, Samsung is investing $6.8 billion compared to Intel’s $4 billion, says John Kang, senior vice president for technical marketing at Samsung Semiconductor USA in San Jose, California (Kharif 2). In the flash memory market, AMD has ...