The Pentium II processor dramatically entered the computing scene. By the end of 1997, it represented about 25% of
our microprocessor production. While PCs using the Intel486(TM) microprocessor took over four years to reach a price point of $2,500, PCs based on
the Pentium II processor were available at this price about three months after the microprocessor's introduction in May 1997.
In 1998, we plan to introduce Pentium II processors at speeds of up to 450 MHz. New software titles are being designed to
take advantage of this additional power. Two exciting examples
are Red Line Racer* by Criterion Studios and G. Police* by Psygnosis, Ltd. Both programs have extremely realistic 3D graphics and action-packed scenes providing high levels of
interactivity and entertainment for the user.
Intel was the first high-volume manufacturer of processors to
use the 0.25-micron manufacturing process and is currently developing its
next-generation 0.18-micron technology.
The Merced processor will deliver additional power
for advanced workstation and server systems
while maintaining compatibility with current 32-bit industry-standard operating systems and applications. This combination
is expected to enable businesses to improve the performance
of their enterprise solutions while reducing the cost per user. Many of our customers plan to build systems based on the
IA-64 architecture.
The year opened big for Intel with the introduction of our Pentium(R) processor with MMX(TM) technology in January. The launch was accompanied by a massive advertising campaign targeting consumers and marked the first time Intel advertised during the Super Bowl. The campaign unveiled our now-famous BunnyPeople(TM) characters (the "bunny suits" they wear are flashy versions of the head-to-toe clean suits worn by technicians at microprocessor
fabrication facilities) and emphasized how powerful, media-rich MMX technology
can make using a PC more fun. Please check the back cover of the printed version of the Annual Report to get your BunnyPeople character sticker with our Investor Relations Web address (www.intc.com).
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Desktops and workstations received a new burst of power with the unveiling
of the highest performance Intel processor to date - the Pentium(R) II processor. Introduced
at speeds of 300, 266 and 233 MHz, the Pentium II microprocessor enables the growth of visual computing for consumers, small businesses and corporate enterprises. It also brings more compelling audio, fluid video and dramatic 3D graphics
to the desktop in a range of new
interactive applications.
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Think small - the width of a human hair, perhaps. Then
consider that a human hair is 400 times the width of the circuits on Intel's most advanced microprocessors. Intel's new 0.25-micron manufacturing process lets us pack more transistors onto each processor and more processors onto each silicon wafer, at a lower cost per transistor than previous technologies. The resulting processors, which first began shipping in June, consume less power and deliver much faster performance.
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In 1997, we unveiled our new 64-bit microprocessor architecture, designed for the high-end workstation and server market
segments. The IA-64(TM) architecture marks a new push to satisfy the diverse computing requirements of high-end systems. Scheduled to ship in 1999, the Merced(TM) processor is the first product to incorporate this architecture; our second IA-64 microprocessor is
slated for 2001.
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Content published April 6, 1998.