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By Chris Kraeuter, CBS.MarketWatch.com
Last Update: 3:45 PM ET Sep 7, 2004

SAN FRANCISCO (CBS.MW) -- Without offering specific timing or product information, Intel plans on introducing dual-core processors across its three major computing segments -- servers, desktop computers and notebook computers -- in 2005.

President Paul Otellini announced the roll-out plans during his keynote address at Intel's Developer Forum, a semi-annual conference in San Francisco for software and hardware engineers.

A dual-core chip is a single computer chip with two logic processors. The two processors work together to handle multiple tasks simultaneously, to reduce power consumption, and better enable other performance features.

Otellini was not specific regarding which of Intel's (INTC) products would be the first to transition to a dual-core construction, but its server chips are expected to get the first dual-core treatment.

During Otellini's speech, Intel conducted a dual-core demonstration with a next generation Itanium 2 chip, currently known as Montecito, with 1.7 billion transistors. Itanium 2 chips are used in the most expensive servers to handle complex computing tasks such as database management.

Otellini also declined to specify other aspects of its dual-core plans, like the architecture base to be used. "We will wait and be confident in what we can ship."

The conservative projections follow several execution problems this year with the company's technology. Otellini said the company is "back to basics" and working off of 90 percent confidence schedules to ensure it can meet shipment targets.

Otellini expects Intel to exit 2006 with 40 percent of its desktop chips made with dual-cores, 85 percent of its server chips containing dual- or multi-cores, and 70 percent of its notebook chips containing dual-cores.

Rival AMD (AMD) also has a dual-core offering in the works which it demonstrated for the first time last week. AMD said its dual-core products should come out in mid-2005.

Otellini said it's not important which company is first with its dual-core offering. "This is not a race; it is a sea change in computing."

Also included in his keynote, Otellini said Intel is focused on the 3 billion potential customers in emerging markets, one third of which are located in Asia-Pacific.

He said through partnerships, Intel's investment organization, education and training, Intel is "seeding the market" for technology adoption in these untapped areas. "We are ensuring every impediment to this growth is taken away."

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