ANDREW GROVE

By David S. Jackson

Intel CEO Andy Grove is already providing computer chips for 80% of the world's personal computers. This year he's aiming for the remaining 20%.

His weapon is the MMX (for multimedia extension) technology, Intel's new multimedia-enhanced microprocessor line that's designed to make music sound more resonant, video images flow more smoothly and graphics colors look richer. Since its release earlier this year, the new microprocessor has found its way into both laptop and desktop computers, and Grove hopes it will lure more people than ever to computers when they need to communicate, do business or just entertain themselves.

Grove also plans to focus more attention on the international market, an area in which California-based Intel is less experienced than at home but one that is increasingly critical as the use of computers and the Internet spreads. More than half of Intel's $21 billion in annual revenues now comes from abroad. To boost sales further, the company is making microprocessors available even to small computer manufacturers overseas.

Moves like these have kept Intel atop the world's fastest-changing industry. Thanks to the popularity of its succeeding generations of chips, from the 386 to the 486 to the Pentium, no other chipmaker has as much influence over how personal computers process information. The company employs 1,000 chip designers, and spent $1.8 billion in R. and D. last year just to keep up with the latest technological advances.

But it wasn't easy getting to the top. A decade ago, Intel focused on memory chips--until Asian firms began stealing sales. Then the company switched to microprocessors, the tiny brains that drive personal computers. When that business boomed, Intel survived a crush of domestic competitors by building faster chips more efficiently than anyone else.

The race isn't over yet, though. Like every other high-tech company, Intel is grappling with the transition to networked computing. "All computing will take place in a connected setting in the future," explains Grove. "That places new requirements on everything we do in this industry." To prepare, Intel has endorsed a new NetPC model crafted in cooperation with Microsoft, and the firm's engineers have been busy developing new applications to take advantage of its powerful chips. But other companies see a chance to develop a mass-market computer that doesn't necessarily need Microsoft software or an Intel chip. IBM, Sony, Oracle and RCA are all backing network computers designed for the Internet.

With such challenges, it's no wonder that Grove's motto (and title of his latest book) is "Only the Paranoid Survive." Andy Grove is clearly a survivor. After successful treatment for prostate cancer last year, the 60-year-old executive stays as trim as a Pentium chip by bicycling, skiing, jogging, kayaking and swimming.

But he's still paranoid. "In high tech, things move a bit faster than in other businesses," he says, explaining why he can't afford to let down his guard. "Our business has a way of bringing surprises as the year unfolds." Grove hopes to bring a few of them himself.

--By David S. Jackson