Intel beats the market with enormous profits

Chip giant Intel – formerly known as Chipzilla – turned in its fourth quarter results and made an enormous profit, reflecting a turnaround in the PC industry.

It turned in a profit of $2.28 billion on turnover of nearly $11 billion, the kind of results it was always used to before the darkening days of global recession.

Its gross margin also soared from 59 percent to 63 percent and it’s ambitious about the future too.

The industry is turning round – that was confirmed earlier this week by Gartner Group and IDC figures – and Intel is confident about the future as well.

CEO Paul Otellini (59) reckoned, in a statement, that the results reflected its investment in high end process manufacturing.

Intel is the “king” of process manufacturing, committed as it is to “Moore’s Law” which dictates that the smaller a chip gets, the more powerful it gets and you get many on a 12-inch wafer – a purified silicon slab that is photo-lithographed. That uses a very sophisticated and expensive kind of camera. The more chips you get on a wafer at a smaller size, the more money you make.

This is semiconductor technology. Software is a different ball game.