Pentium pretenders: computer chips. (competition in the semiconductor industry)

Economist (US), The, October, 1994

Intel Corp dominates the semiconductor industry, supplying about 80% of all personal computer microprocessors. However, several firms are developing chips that mimic or surpass Intel's Pentium chip. The various factors why Intel is likely to lose market share are examined.

IT IS hard to feel sorry for Intel. The semiconductor giant from Santa Clara, California, sold nearly $9 billion worth of chips last year, making profits of more than $2 billion along the way. This year its revenues will exceed $12 billion, according to Kidder, Peabody, a securities house. Intel's chips are installed in more than 80% of all personal computers sold today. Just as Microsoft has dominated system software, Intel has dominated PC hardware for a decade, setting standards and raking in the...

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