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DRIVING A NEW ERA IN CONSUMER ELECTRONICS: INTEL USES MOORE'S LAW TO LEAD TRANSFORMATION INSIDE AND OUTSIDE THE HOME

Announcement posted by Intel 10 Jan 2004

Intel Corporation President and COO Paul Otellini today said Intel is working to bring the benefits and power of computing technologies to the world of consumer electronics. The goal of this effort is to create products that work simply and easily together, provide greater flexibility and offer increased power and usefulness for consumers. By applying advanced silicon technology and helping to advance open standards, Intel is working to bring increased benefits to consumers and provide new opportunities for the consumer electronics industry.
The same dynamics that drove the PC revolution are moving to consumer electronics, said Otellini at an Industry Insiders speech at the International Consumer Electronics Show. As the world of consumer electronics and content shift from analog to digital, there is a great opportunity to advance the rate of improvement in performance, cost and integration of features in CE devices. Think of this as Moores Law applied to yet another industry.
Our goal is to eliminate boundaries between electronic devices inside and outside the home and were working with the PC and consumer electronics industries to make this a reality. For Intel in 2004, this effort will receive as much focus as the work we did last year to advance wireless technologies for mobile computing.
Intel plans to apply its focus on silicon innovation and open platforms to the digital home in order to help create a new era of consumer electronics - allowing individuals to have access to digital content anytime, anywhere, on any device. The company is augmenting its product-related activities with a US$200 million digital home fund. Announced yesterday, the Intel Digital Home Fund will invest in companies that complement Intel products and accelerate development of key technologies and content which enhance and simplify the digital home experience. The fund will be an important component of the companys strategic investment program known as Intel Capital.
In addition to this substantial investment, Intel will apply its wireless expertise and ability as a silicon innovator to develop new technologies for consuming and managing digital content. Examples include the companys development work on a device called the Entertainment PC - a slim form factor PC connected to a television screen. Entertainment PCs can be used to organise, consume and enjoy digital content such as music, movies, TV programming, gaming and high-definition video. The devices will be capable of sharing content wirelessly and operated with a remote control instead of a keyboard. They will include a TV tuner and act as digital media adapter with a silent fan and consumer audio and video connections. Entertainment PCs, which can also serve as wireless network access points, are expected to be available mid-year from a variety of PC manufacturers and sell for less than US$800.
Other innovative technologies include the companys Liquid Crystal on Silicon (LCOS) capability, designed to dramatically improve the appearance of large-screen displays at lower cost. Code-named Cayley, Intels LCOS technology is expected to be available in large-screen displays as early as this year. The displays are anticipated to decline in cost to achieve price points of less than US$2,000 next year.
The company is also providing fundamental technology for advanced set top boxes, digital imaging devices, portable media players, digital media adapters and other devices that provide increased power, flexibility and choice in the way digital content is enjoyed.
Our objective is to provide the essential building blocks that will enable consumers to enjoy the best entertainment experience possible, Otellini said.
In order to ensure consumers can take advantage of the silicon technology Intel is delivering, the company is helping lead the development of open industry specifications that will be essential to sharing content across multiple consumer devices. Intel's role as a founding member of the Digital Home Working Group -- which includes the PC industry, content providers and the consumer electronics industry -- will help drive technology specifications for the benefit of consumers.
By helping to shape standards along with providing advanced silicon technology, we believe we can significantly improve the way consumers use technology, said Otellini. The development of industry standards in consumer electronics will enable more rapid innovation at lower cost -- the same positive impact that standards have had in the PC industry.
In another example of industry cooperation, the development of Digital Transmission Content Protection over Internet Protocol (DTCP/IP) technology by Intel and other companies will enable home users to wirelessly share protected entertainment content among a variety of devices in the home. Through collaboration with content providers such as Warner Brothers and others, this technology is likely to be a cornerstone to expanding digital home entertainment.
Broadband Internet connections, the home PC and wireless technology combined with the ability to share premium content wirelessly means in the future individuals will be able to watch first run movies at home the same day they premiere in the theatre, Otellini said. In our view of the digital home, its not so much about a place, but an ability to share content across handheld, mobile and large-screen devices so that consumers can enjoy digital content the way they want it, when and where they want it.
Intel, the world's largest chip maker, is also a leading manufacturer of computer, networking and communications products. Additional information about Intel is available at www.intel.com/pressroom.
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