Intel Looks To Israeli Minds To Save Company

(Hat Tip: Solomonia)

Intel has not been doing too well recently, with competition eating away at their profits and stealing their competition (an issue that their stock holders are bringing up).

Now it seems that Intel is turning towards minds in Haifa, Israel in order for the company to get its groove back.

(Bloomberg.com) Five hundred employees and guests crowded under a white tent half the length of a football field at Intel Corp.'s Santa Clara, California, headquarters as Chief Executive Officer Paul Otellini put his company's newest line of computer chips through their paces.

"These are the best microprocessors we've ever designed, the best microprocessors we've ever built," Otellini told the audience. "This is not just incremental change; it's a revolutionary leap."

Otellini's pronouncement relegated to obsolescence Intel's Pentium chip, which once powered more than 80 percent of the world's personal computers. That wasn't the only surprise last July.

A camera zoomed in on engineers in lab coats in Haifa, Israel. The video revealed that the chip Intel is counting on to recover from a battering by Advanced Micro Devices Inc. wasn't invented in Silicon Valley. Instead, Intel is betting on a group of Israeli mavericks and a design bureau 7,400 miles (11,900 kilometers) away.

It's good to see Intel finally recognizing the talent coming from this kosher state. Only time will tell whether Haifa's research will pay off in the markets, but I would not be too surprised to see Intel regaining composure with its shareholders.

Image Credit: CNN Money.

Note: I think AOL should pay very close attention to this, as they are in a similar situation.

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