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Intel to Demonstrate Next Generation Chip Within a Year

January 27, 1994

NEW YORK (AP) _ Intel Corp., the most powerful name in personal-computer chips, will demonstrate its next-generation product within a year and begin selling it later in 1995, chief executive Andrew Grove said today.

In a speech to financial analysts, Grove said the company will have the new chip, code-named P6, running personal computers by this time next year.

His statement was the first public acknowledgement by Intel of when its next chip will hit the marketplace.

Since its chips are the ″brain″ in more than 80 percent of personal computers, Intel’s development pronouncements ripple through the industry, causing PC makers and software writers to adjust their planning.

Intel is just hitting stride in production of the Pentium chip, introduced last summer four years after its previous generation 486. The company reached high volume production of Pentium faster than any previous product.

Grove’s P6 declaration signifies an even quicker move to the next chip.

″This is what we do. We eat our own children and we do it faster and faster,″ Grove said in an interview before the speech.

The P6 will continue the company’s string of doubling performance with every generation. It will have 6 million transistors and be capable of processing 300 million instructions per second.

While sales and profits continue soaring, Intel is facing greater competitive pressure than it has previously. A chip co-developed by Motorola Inc., Apple Computer Inc. and International Business Machines Corp. will be used for the first time in Apple’s Macintosh computers in March.

In addition, companies that clone Intel designs have also made greater strides. On Wednesday, Compaq Computer Corp. said it would use chips from Advanced Micro Devices Inc. as a hedge against supply shortages from Intel.

Intel’s capital spending will accelerate to $2.4 billion this year from $1.9 billion in 1993, Grove said. That would exceed the combined capital spending of the next four largest chipmakers.

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