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Intel invests in Vietnamese software developer

Intel Corp. (NASDAQ:INTC), in the maddening midst of what seems to be an all-out war -- again -- with rival chipmaker Advanced Micro Devices, Inc. (NYSE:AMD) in the hardware business, has just invested in a small software developer located in Vietnam, in what is being called a small but highly symbolic move by the world's largest chipmaker.

Intel Capital, the financing arm of the company, along with LBO expert and capital house Texas Pacific Group have collectively invested $36.5 million in FPT, a 6,000-person software development outfit in Hanoi, Vietnam that provides back-end operations, telecommunications and VoIP solutions to Japanese companies.

Vietnam's economy has been growing steadily recently, as the country reported economic growth of 8.4 percent in 2005 alone. Vietnam's tech market, estimated to be valued at $800 million, is growing at about 20% a year. In addition to this recent Intel-Texas Pacific investment, Intel announced plans to build a $300 million chip assembly and testing factory in Vietnam's commercial capital, Ho Chi Minh City.

Apple updates MacBook Pro line

The MacBook Pros have been solid selling upscale laptops for Apple Computer Inc. (NASDAQ: AAPL). The switch to Intel chips increased speed and added the ability to dual-boot windows. Now Apple has added the Intel Core 2 Duo processor to the professional laptop lineup at 2.16 or 2.33 gigahertz to give the laptops a stated 37% speed boost.

The new laptops also feature more storage and memory, Apple handing out 1 gigabyte of RAM with the base model, and a 2 gigabytes on up.

The new update also features a firewire 800 port. This is a good sign that Apple is listening to a lot of its consumers who are still invested in Firewire, as well as realizing that the professionally-oriented userbase of these laptops demand more RAM.

Dell and Intel not getting along, or so it appears

When Dell, Inc. (NASDAQ: DELL) and Intel, Corp. (NASDAQ: INTC) appear to have a somewhat-strained relationship, bad things are on the horizon most likely. Intel's Viiv integrated platform, which was originally displayed prominently on Dell's PCs, has since been a marketing message mess-a-thon and is not getting top billing -- or any billing -- on Dell's newer Dimension and XPS desktop computer systems. In fact, consumers of these newer systems would not even know Intel's Viiv is in the system, until they unbox it at home or the office. What's happened here with Intel and Dell? I'd be thinking that the mass cross-marketing dollars the two give each other would still be in effect.

Dell's recent use of AMD processors most likely has caused a de-emphasis in Intel processors, which is not to be taken lightly since Dell is the world's largest PC manufacturer. From a strictly consumer standpoint, I believe Intel and AMD processors are commodities and have been for a while, so it was a very good decision on Dell's part to finally introduce AMD processors into its line.

A few weeks ago, I purchased a Dell Dimension E521 from dell.com with an AMD Sempron processor, which was just after Dell had released newer PCs with AMD chips. After reading that the Sempron is a lower-capability Athlon chip, and with the price being below $330, I thought it was perfect for a secondary PC. I received the unit about a week later and it's as snappy and efficient at the tasks I need as the five-months-old Pentium 4 machine sitting here.

The reason I did not select an Intel processor? None was offered with the specific Dimension E521 system I ordered and the Intel equivalent in a Dimension started at a few hundred dollars more. From this consumer's standpoint, AMD=cheaper and very capable, while Intel=more expensive and more than was needed. I'm not sure if many other customers are thinking like this when purchasing newer PCs at rock-bottom prices, but I'm sure some are.

With Dell dropping Intel's Viiv off at the door before going to the party, perhaps this is the start of a little feud between the leaders in their respective fields.

Intel Core 2 Duo chip can't have any distribution mishaps

AMD has been knocking Intel's socks off for the past several years in the chip biz by producing superior products with better performance at cheaper prices. This has caused AMD to deliver more product to more customers and form firmer relationships as Intel stumbled around deciding how to respond. AMD even recently agreed to acquire graphics chipmaker ATI in a deal worth $5.4 billion so that it could expand its portfolio of chip products from CPUs to graphics chips -- an important marriage of technologies that scales rather nicely into more sales and more integrated products for customers -- which they all want.

Intel, though, has been preparing a worthy comeback to the AMD onslaught with its partnership with Apple (which gave it much-needed PR more than anything) and with the recent release of the Core Duo and just-released Core 2 Duo chips. These new flagship products are beating equivalent AMD products and are slowly putting Intel back into the driver's seat on the performance and cost aspect of desktop computer processors, among other things.

But, what if Intel stumbles yet again and cannot supply the needed Core 2 Duo product volume that customers request? Intel has had this problem before -- as has AMD -- but Intel cannot afford it this time. The production launch of the Core 2 Duo must be solid. By some indications, it is not turning out that way, at least yet. The Core 2 Duo products look to be beating just about any competing product, but the short supply (in retail) is causing minor price gouging from many sellers, due to the fact that the Core 2 Duo is selling for above list price in many places -- a sure sign of supply/demand inequity. Intel better respond fast and get its supply machine in order.

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.

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Last updated: February 12, 2012: 10:39 AM

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