Intel hopes to fit integrated chips made using the new manufacturing process into devices like set-top boxes and TVs, which will create new markets and revenue opportunities, Smith said.

Netbooks emerged as a steady revenue stream for Intel, and the segment is ripe for growth in the tough economic environment, Otellini said. The company established the business and has a good base to grow with, but competition is heating up, he said. New competitors are entering Intel's turf with netbooks that offer unique applications, Otellini said. For example, the netbook is being marketed as a communications device.

"There are already models in Japan, for example, where you get a netbook for 1 Yen (US$0.01) if you sign up to a wireless subscription. People will play with those models much like they did in the early days of the cell phone, and it's difficult to figure which of those will stick," Otellini said.

Looking ahead, Intel will also continue to invest in research and development to have a gaggle of new products ready when the recession ends, Otellini said.

The company's new Nehalem microarchitecture is expected to make its way to new products like desktops and notebooks by the second half of the year, Otellini said. The new architecture will offer incremental growth opportunities in new markets and form factors. Intel launched its first Nehalem-based Core i7 chips for high-end gaming desktops in November.