Wireless IT Tops Barrett's ListWireless IT Tops Barrett's List

Intel is undergoing a "digital makeover" to build semiconductors that fuse computing and communications functions in advance of a predicted boom in wireless IT, CEO Craig Barrett says.

In a speech to attendees at the Consumer Electronics Show in Las Vegas Thursday night, Barrett said Intel foresees a huge impact on its business as consumers use electronic devices capable of computing, making phone calls, and transferring data and digital media. "We're not going to talk about computers and communications devices separately," he said.

Intel is designing chips that can power notebook computers, PDAs, and home electronics items as sales growth of desktop PCs has slowed. Worldwide semiconductor sales are stuck at about 1995 levels, according to market researcher IDC, though they're forecast to increase 9.2% to $149 billion this year. In 2000, chip sales grew 36% to $204 billion.

Barrett showed computers using new Intel chips during his speech. Intel's Xscale processor for portable electronics powers ViewSonic's Smart Display, a wireless flat-screen monitor that runs Windows XP applications via a stylus when it's untethered from a desktop PC. Earlier this week, Intel unveiled the brand name Centrino for a bundle of semiconductor products designed for laptops. Centrino chips are also designed to make laptops run faster, weigh less, consume power more efficiently for longer battery life, and connect to wireless networks.

The Centrino package includes a new mobile processor, formerly code-named Banias, plus chipsets and chips for connecting laptops to wireless 802.11b networks. Intel plans to ship Centrino products in March, with support for the faster 802.11a due sometime in the second quarter, Barrett said. Also in Intel's pipeline: a fast PC processor code-named Prescott that could spur demand for broadband connections.