Intel Corp. (NASDAQ: INTC) seems to be reaping the benefits of massive layoffs from last year as well as a surge in new products that are outpacing longtime thorn-in-the-side competitor Advanced Micro Devices, Inc. (NYSE: AMD). AMD's woes have been huge of late, although the release of a new quad-core microprocessor may be able to help it get back on track. Unlike in the past, however, Intel is now in reactive mode, not the proactive one.

Intel CEO Paul Otellini said this week that the world's largest chipmaker may speed up work on ever-faster computer chips just as the demand for PCs continues to rise around the world. Intel is positioned nicely to take advantage of expected double-digit growth in PCs, as emerging markets continue buying up hordes of personal computers and saturated markets -- like the U.S. -- fuel growth by replacing desktop PCs with laptop systems at a blistering pace.

Intel's recent focus on developing new chips to outpace products by its scrappy and smaller competitor is winning it more customer sales and loyalty after years of being perceived as beaten when it came to cost and performance of processors used in laptop computers through to corporate server systems. Whatever Otellini has done in the last year is paying off and Intel has roared back this year after having the lowest chip market share in 11 years last year. AMD is going to have a very tough time this go-round with the resurgent Intel, that's for sure. It was probably a good move, then, for AMD to gobble up graphics powerhouse ATI when it did -- as the company will need that business now more than ever.

Intel Corp. (NASDAQ: INTC) is in the semi-hot seat with fellow processor manufacturer Transmeta Corp (NASDAQ: TMTA) over the technology used in its newer Core Duo processors as well as the Pentium line of processors that Intel has been known for worldwide for over a decade. Many global PC manufacturers -- like Apple, HP and Dell -- are now using the newer Intel Core Duo chips. Intel will probably, then, settle this out of court, as I doubt it wants an injunction from selling these processors that provide a good bulk of its revenue base.

The Transmeta lawsuit alleges that Intel has violated ten patents covering processor design and power efficiency techniques. The small chip manufacturer and designer is asking the court for damages, royalty payments, and an injunction barring Intel from selling infringing products. The injunction, if granted, would cover almost every heavy-hitter in the Intel product portfolio -- the Pentium III, Pentium 4, Pentium M, Core and Core 2 processors -- basically, every major processor release in the last 10 years.

Of significant note here are the patent violations that have been the hallmark of Intel processors for years; things like basic processor functions (scheduling and addressing instructions on the chip) or voltage adjustment technology that lives inside the processor and changes depending on its workload (great for laptop battery life). My question is this: what took Transmeta so stinking long here? Intel has had these technologies in its chips for years and years.

At last, the "Pentium" name is going away from the microchip and computer landscape after more than 10 years in existence. I remember having a PC powered by I think the first Intel Pentium -- a Pentium 60 (Megahertz). My, have things changed for the faster. Intel CEO Paul Otellini officially took to the stage to show off the Pentium successor, the Intel Core 2 Duo.

This new microchip architecture should help put Intel back on the performance map against smaller rival AMD, which has beaten up Intel lately with much faster chips and a kind of "underdog" status that has won it marketshare from almost every angle. When AMD announced its plans to buy video chipmaker ATI for $5.4 billion just last week, the assault is now on with Intel releasing the Core 2 Duo to challenge AMD's perceived speed advantages.

Intel needs a showstopper in the Core 2 Duo package in order to reverse some problems with aging Pentium designs (which are now retired) and to put it back on track to consistent, excellent growth. While recently axing 1,000 managers and re-arranging multitudes of its business to slash costs, Intel's timing on the new flagship consumer/business chip product could not have been better.

In what may be just the tip of the iceberg in layoffs at Intel, 1,000 managers are to be laid off by the end of July.

Analysts are expecting more layoffs during the continued lead-up and follow-up to Intel's July 19th earnings report. If Intel misses another quarter forecast, it will be the third consecutive miss since 4Q'05.

Likely in a play to keep his job, CEO Paul Otellini has made a pledge to restructure the company within a 90 day review period. Intel will need to cut down fixed costs to boost margins and regain some of the flexibiltiy that competitor AMD seems to have no lack of.