Intel 1999 Annual Report Download - page 4

PART I **
ITEM 1. BUSINESS
INDUSTRY
Intel Corporation, the world's largest semiconductor chip maker, supplies the computing and communications industries with chips, boards,
systems and software that are integral in computers, servers, and networking and communications products. These products are used by
industry members to create advanced computing and communications systems and are offered at various levels of integration. The company
was incorporated in California in 1968 and reincorporated in Delaware in 1989.
PRODUCTS
The company's major products include microprocessors, chipsets, flash memory products, networking and communications products,
embedded processors and microcontrollers, and digital imaging and other PC-peripheral products. Intel's component-level products consist of
integrated circuits used to process information. Integrated circuits are silicon chips, known as semiconductors, etched with interconnected
electronic switches. Intel sells to:
. original equipment manufacturers (OEMs) of computer systems, telecommunications and data communications equipment, and peripherals;
. PC and computing appliance users (including individuals, large and small businesses, and Internet service providers) who buy Intel's PC
enhancement products, business communications products and networking products through retail and industrial distributors, and resellers
throughout the world;
. other manufacturers, including makers of a wide range of industrial and communications equipment;
. businesses, schools, and state and local governments that are building or enhancing Internet data centers.
Intel also provides data center services to businesses needing e-Commerce services.
The company is organized into five operating segments according to Intel's various product lines: the Intel Architecture Business Group, the
Wireless Communications and Computing Group (formed out of the former Computing Enhancement Group), the Network Communications
Group, the Communications Products Group (formed during 1999) and the New Business Group. Each group has a vice president who reports
directly to the Chief Executive Officer of Intel. The Intel Architecture Business Group is the only reportable operating segment for financial
statement purposes. No other operating segment represents 10% or more of revenues or operating profit of the company. Reference is made to
the information regarding revenues and operating profit by reportable segments, and revenues from unaffiliated customers by geographic
region, under the headings "Operating segment and geographic information" on pages 27 and 28 of Intel's 1999 Annual Report to Stockholders
and "Management's discussion and analysis of financial condition and results of operations" on pages 30 to 36 of the 1999 Annual Report,
which information is hereby incorporated by reference. Operating results of segments that are not individually reportable are included in the
"all other" category for financial statement segment reporting purposes.
** Page references to the 1999 Annual Report to Stockholders or to the company's 2000 Proxy Statement for its 2000 Annual Meeting of
Stockholders under Item 1 in
Part I and Items 5, 6, 7, 7A and 8 in Part II; Items 10, 11, 12 and 13 in Part
III; and Item 14 in Part IV relate to the bound, printed versions of such annual report and proxy statement, not to the electronic versions
appearing at the Intel(R) Internet site (www.intel.com and www.intc.com). However, all data referred to also appears in the electronic versions.
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