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(Updating with more quotes)
TAIPEI (AFX-ASIA) - Intel Corp's chief executive officer Craig Barrett said
the hike in the company's third quarter sales and profit margin forecasts is not
a decisive indication of a cyclical recovery in the semiconductor industry.
"It is too early to say we have seen the emergence of a total turnaround,"
Barrett told a news conference where he and Taiwan's Premier Yu Shyi-kun jointly
announced the opening of the Intel Innovation Center in Taiwan.
The Intel CEO declined to say if the company plans to invest in other DRAM
suppliers following its recent investment in Elpida Memory Inc, saying "we will
let you know as soon as we decide."
He said the Intel Innovation Center in Taipei will have 25 scientists almost
instantly, with the number to increase to 50-60 in a couple of years.
He declined to elaborate further in capital terms.
While research and development is how innovation comes from, any given
country must have government support, educational infrastructure and products
with global footprint, he said.
Taiwan has been chosen as home to the Intel Innovation Center as it is
well-positioned for such a huge opportunity and a huge challenge, he said.
Barrett said Taiwan is now at a technology crossroads and government and
business leaders should accelerate their efforts to make the island an
innovation hub for digital convergence.
"The convergence of computing, communication and content is underway and
presenting a wealth of opportunity for technology innovation and creation.
"Innovators create the future and Taiwan has a unique opportunity to build
upon its strengths in design and manufacturing to play a key role in the
creation of future technologies."
Barrett said it was virtually unthinkable for Taiwan to be linked to
computer system design five years ago.
"But now computer system design is not being done anywhere else but here.
You are seeing a lot of innovation in terms of system design.
"Wireless technology is another good example... (there has been)
participation by Taiwanese companies from the outset."
The role of Taiwan as a future convergence hub can be summarized as
"innovated in Taiwan" instead of "manufactured in Taiwan" commonly known in the
past, he added.
In its media backgrounder, Intel says the Innovation Center in Taipei is
designed to focus on supporting product and technology development for the
networking communications industry.
The center is established to assist in transforming Taiwan's IT industry
from a design manufacturing hub into an innovation hub through collaborating
with the island's ODM (original design manufacturing) and OEM (original
equipment manufacturing) manufacturers, government and universities to boost the
industry's global growth, it added.