Intel CEO on New Technology

" Joining us says his company kicks off its developers forum in San Francisco meanwhile the markets shrug off yesterday's slide pulling back within 200 pointed out 10000 again it's that. Fed begins its two day meeting on interest rates team coverage coming."

" Right up but first thousands of people descending on separate Cisco today revealed hottest event in silicon -- world the Intel developer's forum. As we mentioned thousands and thousands of people joining us live to watch what's going on Intel's world. We now have Intel CEO Paul I believe you -- to stop of course up about 35%. Year to date. But he's got big news today and we welcome Paul -- good to have you here in the straddling NASA --"

" Hi Liz or you can very well thank you what you've got this big news out today and your keynote speech the announcements. Of the first working test chips using something called 22 nanometer technology this comes as your. Just starting to ramp up something that's a little bit slower 32 nanometer manufacturing. In layman's terms what does increasingly lower nanometer technology do for ships and for the products in which they go."

" What's real simple the smaller we can make a circuit the faster runs the cheaper it is to build. And the less power consumes so if you move if you move forward in technology. You make things smaller and smaller and smaller. And today we demonstrated. Technology that will bring it to production two years from now. And that also announced that we're bringing the 32 and animators into production as we speak."

" Right good that you just spent about seven billion dollars to get the 32 nanometer technology into Intel plants now you say what two years for the 22 nanometer technology. But what will it do it and then as you turn around in two years -- that something like twelve nanometer technology which is even faster."

" we have four generations of technology beyond what we're producing today in development so we tend to do a new silicon technology every two years of the cases of -- law brings us. And and what -- do for you is that you know we can now build. With today's technology we can build billion -- chips in a very cost of four of an effective fashion. That means that we can continue to bring the cost of computing down to people -- in improving the experience."

" Okay so in two years the newest technology that you guys up 80% of the market share brilliant people working for you. But this is all superimposed over the European Union's anti trust -- saying that you've been winning. Because Intel violates anti trust laws. You've appeal -- one point five billion dollar fine regarding unfair practices against competitor Advanced Micro Devices but now the EU is producing documents. And they are emails from companies like Dell which they say show you 'cause bullying computermakers into not using the competition ships. What is your response to this evidence."

" Well that there's nothing new here and the -- the claims are. Groundless in my mind. The EU is as had a consistent view of how they. Interpret some emails there's a lot of more emails out there that we think we'll tell our side of the story -- Telecom that our customers side of the story. When when they reach the light -- day. Unfortunately were under protective order -- he was not and so only one side of the story is getting out now -- a bit frustrating process you can match."

" yeah I could definitely but I would say that there is something new here and that they've they're releasing their cards that are in their deck but the question is you know. Did Intel offer rebates to its customers that -- conditional. On those very customers not buying tips from your competitors. Absolutely not. Simple as that you never did that."

" but let me just ask about you're General Counsel or your former general -- counsel Bruce only just left Intel. Is that -- causing problems for your legal team in dealing with these problems. Well it's yeah it's it's a loss -- any time it was a senior manager Bruce wasn't in charge. Of the litigation process the art director of litigation is firmly in charge -- outside counsels are are unchanged though. You know while we hate to lose -- as a friend. In terms of the process and the message behind it same oh same -- Let me let me just ask you because you have been focusing on on the global force of Intel been pushing that outward as much as possible over the past few years. Do you see that that belt laws. Kind of unifying getting closer together we're getting further apart in terms of a general strategy to avoid. Violating antitrust laws here and abroad."

" Well I think that there is a difference of opinion. Globally on antitrust theory and I'm not a net interest lawyer so I may get into trouble here but. In general the US law which is the oldest and most tested. Tends to focus on. Preserving and testing harm to the consumer -- the European launch some of the other laws tend to focus on harm to the competitor. And and you know. You could you can draw scenarios where you can provide benefit to the consumer -- me indirectly hurt a competitor and put you in a situation like we've found herself and in Europe. And I think that at some point in time it would be good for the antitrust authorities of the world. To come up with a common view of this because it makes it very difficult for companies that operate on a global basis to to figure out what the rules of the road you know."

" They're they're meeting they're going to be meeting a lot of the foreign ministers coming shortly of course this is that we -- the General Assembly the UN. Should that be one of the focuses or do you have information that that may be one of the focuses to try to unify. Their vision of anti trust."

" You know I don't I don't believe it is I know that our Justice Department recently has given some some. Speeches about trying to unify the thought here and try to to have a due process of both sides of the Atlantic. And I think -- process can happen below the heads of state level and I don't."

" I don't see it happening because you're absolutely right the Europeans are way more interested in protecting competitors. Versus actually protecting the consumer which is something that the US tries to make its main focus let's talk about. Your new focus here you know you've always been huge in the PC market -- about 80% of the of the market share from -- processes there but expanding the boundaries to consumer products you -- talk for a couple of years now about that very issue. Where do you stand on that and where he found the most traction."

" What we're making very good traction. In the embedded systems area in consumer electronics moving architecture. Into smart set top boxes that are connected to the Internet so that the Internet the television content will be seamlessly integrated they're really fun fashion. And then moving increasingly into hand held and Smartphones over the next couple of years there really allows us to drive architecture. It top to bottom from servers down to the small devices."

" In that realm though you'll be taking on established players like advanced risk machines marvell -- and a host of others. How do you win in that forum."

" Well the best technology always wins in our market in semiconductor and I think our silicon -- second to none. Architectures is about the most pervasive out there. And it's -- as we drive the power in the form factors into these new markets I think that. The advantage is we have will play out we're not afraid of competition."

" Just to put these nano chips into perspective for folks who can't can't wrap their their mind around it. This newest chip DA have is two point nine. Billion transistors in an area about the size of a fingernail. Now you mentioned -- of course toward more being one of the founders of Intel. Is says that you know chips are going to be able to do more faster at a cheaper price. Ad infinitum isn't there some point at which you hit a wall and mores law breaks down."

" What I don't think so we don't see it. We've got four generations as I mentioned earlier under development which is about as far out as you can ever we've ever seen that's eight years. It's important to note that -- laws not a law of physics. -- this not new Tony and physics here it's a law human inventiveness and I think it's and -- that -- people look out. They see ways in inventing around some of the barriers that we currently thinker impenetrable."

" You're exactly one month away from the launch of windows seven -- doesn't had a terrific relationship with Microsoft but increasingly in developing for example -- on software primarily as we mentioned for mobile and consumer products. What does that do to that relationship if anything with Microsoft."

" We're -- we're certainly very excited about windows seven for PCs and notebooks and and on all the other major segments in computing. That's unabashed and and no blinking. Microsoft has long had a strategy of pushing their. Operating system into areas where we Intel wasn't and now we're pushing our chips into places whether or not. All chips -- operating systems and all operating systems -- chip so. I -- CS finding our own way in these areas. I think that they will likely support us in many of them. But what where they don't. We'll find her own way and and and encourage things like mobile to be developed."

" Well as until always does finding its own land coming -- with -- great technology thank you so much I just I just have to ask your final question housing Andy Grove doing."

" If he's doing great isn't he does irascible as ever. I imagine us so we former co -- the journal thank you very much Paul auto Alina great to see you sir."