Intel 2008 Annual Report Download - page 17

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Table of Contents
Chipsets
Our chipsets compete in the various market segments against different types of chipsets that support either our microprocessor
products or rival microprocessor products. Competing chipsets are produced by companies such as AMD (including chipsets
marketed under the ATI Technologies, Inc. brand), NVIDIA, Silicon Integrated Systems Corporation, and VIA.
We also compete with companies offering graphics components and other special-purpose products used in the desktop,
mobile, and enterprise market segments. One aspect of our business model is to incorporate improved performance and
advanced properties into our microprocessors and chipsets, for which demand may increasingly be affected by competition
from companies, such as NVIDIA and AMD (including products marketed under the ATI Technologies, Inc. brand), whose
business models are based on incorporating improved performance into dedicated chipsets and other components, such as
graphics controllers.
Flash Memory
Our NAND flash memory products currently compete with NOR and NAND products primarily manufactured by Hynix
Semiconductor Inc., Micron, Numonyx, Samsung Electronics Co., Ltd., SanDisk Corporation, Spansion Inc., and Toshiba.
Connectivity
We offer products designed for wired and wireless connectivity; the communications infrastructure, including network
processors; and networked storage. Our WiFi and WiMAX products currently compete with products manufactured by
Atheros Communications, Inc., Broadcom, QUALCOMM, and other smaller companies.
Competition Lawsuits and Government Investigations
We are currently a party to a variety of lawsuits and government investigations involving our competitive practices. See
“Note 24: Contingencies” in Part II, Item 8 of this Form 10-K.
Acquisitions and Strategic Investments
During 2008, we completed two acquisitions qualifying as business combinations. See “Note 11: Acquisitions” in Part II,
Item 8 of this Form 10-K. Also, we completed the divestiture of our NOR flash memory business in exchange for an
ownership interest in Numonyx.
Additionally, in 2008, we made a significant strategic investment in Clearwire Communications, LLC (Clearwire LLC).
During the fourth quarter of 2008, Clearwire Corporation and Sprint Nextel Corporation combined their respective WiMAX
businesses in conjunction with additional capital contributions from Intel and other investors to form a new company that
retained the name Clearwire Corporation. The additional capital contributions included our cash investment of $1.0 billion.
Our pre-existing investment in Clearwire Corporation (old Clearwire Corporation) was converted into shares of the new
company (new Clearwire Corporation), and the additional capital contribution of $1.0 billion was invested in Clearwire LLC,
a wholly owned subsidiary of the new Clearwire Corporation. For further discussion of our equity method investment in
Clearwire LLC, see “Note 6: Equity Method and Cost Method Investments” in Part II, Item 8 of this Form 10-K.
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