PCs, not low-cost devices, to rule: Intel

The world's largest chip maker, Intel Corp on Friday said that personal computers would continue to dominate as more applications get digitised, even as low cost access devices like Simputer would play a small role in computer penetration across the world.

"There is an opportunity obviously for dedicated devices, but every time this opportunity comes up, the great flexibility and capabilities of personal computers tend to trump the

dedicated devices," Intel chief executive officer Craig R Barrett said at a CEO forum organised by National Association of Software and Service Companies in Bangalore.

He cited Simputer, developed by Indian Institute of Science professors in Bangalore as one of the low cost access devices, which will have a role in computer penetration, but was bullish on the PC for its ability to handle more applications.

"Yes, you can, in a dedicated device, take digital photos or digital music, but can it do the applications you want to?" Barrett, who is the chairman designate for Intel, asked.

He said hardware manufacturers globally were operating on thin margins, producing computers. Cost differences were minimal, with a high performance PC available in India for several hundred dollars.

Barrett said the healthcare industry offered tremendous opportunities for the semiconductor industry, as "healthcare was the one of the last industries to make good use of IT".

He said the transistor in the chips that are currently produced are smaller than virus, blood cells and cancer cells. "Using the processing real time can help trace elements of diseases in the early stages", he said.

Barrett said computer chips could be harnessed in understanding the human genome and DNA, which provides "enough opportunity to treat us as an individual, than as an average person".

He said firms like Intel always face challenges from small companies that have technology strengths and cited a firm 'Transveta', which was emerging as a significant player in the mobile chip space, but had failed in execution and Intel had responded faster in this field.

Barrett said Intel was working in Wimax -Wireless Internet Access Technology- with a range of 30 to 40 kms and added that this would be faster than DSL and broadband presently available for Internet access.

He said mobile wireless access was being adopted faster across the world. In a bid to silence critics, Barrett said investments by semiconducter firms in labs were for the longer horizon and the industry underwent a downturn cycle every three years.

He said a fabrication facility would take around two years for setting up, with costs of $2 to $3 billion, and before even the product, which it will manufacture is designed.

Barrett said organisations which want to succeed needed to change the rules of the game to be ahead and cited Intel's approach like advertising the product though the end consumer does not see it, venture funding into firms that will accelerate growth of Intel's business and changing the traditional distribution model.

"It is important to follow the rules, it is equally important to change the rules in an honest way," he said.