Intel Corp (INTC)

[SemiconEng]

this bothers me. If there was a market for these devices the equipment makers would be rushing to develop trying to secure profits. Intel had to push a manfacturer to pursue. Intel must think it has a vision for a product that no one else can see and is willing to invest to get a product to market. not really customer / demand driven.


*** Maybe..... since intel is taking the money from The Intel Capital Team, then that is the charter of the team, to seek out promising ideas, and new technologies.....


http://www.intel.com/capital/portfolio/overview.htm
With an overall strategy to stimulate advances in computing and communications, the Intel Capital team seeks out and invests in promising companies worldwide working together to establish new and innovative technologies, develop industry standard solutions, drive global Internet growth, enable new usage models, and advance the computing and communications platforms.


*** Here is the intel Press release, which indicates that it's actually a "Bond Sale", which at the Bond's maturity, "could be" converted into Onkyo Common Stock (at intel's discretion). Doesn't a Bond sale mean that if the technology flops, then intel could just cash in the Bond at "maturity", and get their money back?


http://www.intel.com/pressroom/archive/releases/20050124corp.htm
Onkyo To Issue 760 Million Yen Convertible Bond To Intel Capital
TOKYO , Jan. 24, 2005 -- Onkyo Corporation announced today that its board of directors has approved the sale to Intel Capital of a convertible bond having a face value of approximately ¥760 million (approximately US$7.4 million at present exchange rates). The bond, which would be issued in February, subject to compliance with regulatory procedures and other customary conditions, would mature in March 2009 and would be convertible at Intel's option into Onkyo common stock. The proceeds would be used to extend Onkyo's home theatre technologies by developing and commercializing advanced audio and visual systems that complement Intel's digital home solutions.

The bond would be purchased using resources from Intel Capital's $200 million Intel Digital Home Fund, which supports Intel's initiatives to enable people to enjoy digital content –including music, photos, games and video – on multiple devices in the home and beyond.