Toshiba Buys Intel Desktop Computers

INTEL Corp., the world's largest semiconductor maker, has begun assembling personal desktop computers to be sold in Japan under the Toshiba name, Toshiba Corp. officials said July 25.

Toshiba is the world's leading maker of notebook PCs but sells only a few desktop models - all in the Japanese market. It said it hopes to expand its desktop share by selling about 120,000 Intel-made desktop PCs under its own brand name this fiscal year.

Toshiba spokesman Keisuke Ohmori said the decision to buy PCs from Intel was based on making the best use of Toshiba's facilities. ''The PC market is expanding rapidly, and we need to optimize our resources.'' Toshiba is also ''studying the feasibility'' of selling desktop PCs overseas but has made no decision yet, he said.

Santa Clara, Calif.-based Intel is best known for its microprocessor business, for which it holds about 80 percent of the world market. But it also sells assembled computer-circuit boards and other components to PC makers.

That has allowed other computer firms to release new products quickly and save money on research and development.

The Intel-produced PCs will be powered by Pentium microprocessors.

Toshiba plans to sell 400,000 PCs in Japan this fiscal year, with the Intel-made models making up about 30 percent and Toshiba's notebook PCs the remaining 70 percent.