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Intel Chief Executive Paul Otellini

Boldness has always been part of Intel's DNA. In 1965, co-founder Gordon Moore predicted that the number of transistors that could in a cost-effective manner be put on an integrated circuit would increase exponentially, setting the pace for the computer industry for decades to come. In the mid-1980s, Moore and then company President Andrew Grove killed Intel's biggest business--computer memory--in order to place the risk-it-all bet that turned it into the world's largest manufacturer of microprocessors.

Now, with the global economy facing its darkest days since the 1930s, Chief Executive Paul Otellini says he will spend around $7 billion over the next two years to upgrade Intel (nasdaq: INTC - news - people )'s factories--or fabs--to crank out processors built from even smaller transistors.

Otellini has decided to hustle to market a new generation of affordable mass-market processors, code-named Westmere. "One of the best ways to use this kind of capacity is for what I call a 'square-wave transition,' to bring massive amounts of new technology at a great price point," Otellini told Forbes. Here are edited excerpts from his interview.

But now that the Bush administration has agreed to lend GM and Chrysler $17.4 billion to stave off bankruptcy, Mulally is running as fast as he can from those other guys. "We're in a different place," says Mulally, whose company had $19 billion in cash on Sept. 30 and isn't seeking an immediate cash infusion.

Don't be so sure. Ford, which lost $8.7 billion through September, may yet need taxpayer money. It is burning more than $2 billion a month and has asked for a $9 billion line of credit as a safety net in case industry conditions worsen. And it's looking more and more like Ford will need it.

Ford's financial projections are based on a rosier industry sales forecast--12.5 million vehicles (including heavy trucks) in 2009 and 14.5 million in 2010--than most industry experts predict. JD Power & Associates is forecasting 11.4 million light-vehicle sales in 2009 and 13.6 million for 2010.

IHS Global Insight is even more pessimistic. It now forecasts sales of 10 million to 10.5 million light vehicles for 2009, and 12.5 million units for 2010. GM's best case scenario is 12 million units in 2009 and 14 million in 2010, though its business plan is based on more conservative estimates. Last year, the industry sold 16.1 million light vehicles.

If Ford's assumptions prove too optimistic--as is likely--it too will be approaching Uncle Sam for help. "All automakers, including Ford, are going to need government money," says IHS Global Insight analyst Rebecca Lindland.

Self-interest required Mulally to stand up for his weaker competitors. A collapse of one or both would hurt suppliers and could potentially bring down Ford as well. But in the meantime, Ford is shrewdly portraying itself as the healthiest U.S. carmaker and quietly stealing market share from its crosstown rivals. Ford gained 1.4 points of market share in November, while GM lost 1.6 points and Chrysler lost 2.3 points.\

Apple's chief executive is the master of surprise--and not just when he's launching new products.

Newly installed White House chief of staff Rahm Emanuel and President-elect Barack Obama. Photo by Charles Rex Arbogast of the Associated Press

llinois Rep. Rahm Emanuel has accepted the job as President-elect Barack Obama's chief of staff, a move ensuring that a seasoned Washington insider with deep knowledge of both Congress and the national political landscape will be at Obama's right hand in the White House.

"Though Rahm understands how to get things done in Washington, he still looks at the world from the perspective of his neighbors and constituents on the Northwest Side of Chicago, who work long and hard, and ask only that their government stand on their side and honor their values," Obama said in a statement announcing the move this afternoon.

Of his decision, Emanuel said: "I'm leaving a job I love to join your White House for one simple reason -- like the record amount of voters who cast their ballot over the last month, I want to do everything I can to help deliver the change America needs."

Emanuel was elected to Congress in 2002 to a strongly Democratic Chicago-area seat once held by legendary Ways and Means Chairman Dan Rostenkowski. He rapidly rose through the ranks of the Democratic Caucus -- serving as the chairman of the Democratic Congressional Campaign Committee in 2006 and then as the Caucus Chairman over the last two years.

But, Emanuel's experience prior to coming to Congress as an elected official may be more instructive when seeking to understand what sort of chief of staff he will be.

During the 1988 election cycle, Emanuel served as national field director at the DCCC under then Chairman Beryl Anthony (Ark.) and then spent the better part of the 1990s affiliated in one way or another with the campaign and then presidency of Bill Clinton.

Emanuel oversaw fundraising during the presidential campaign of Clinton and held several positions in the White House, first as political director, then manager of special legislative efforts, and finally as senior adviser.

One former Clinton Administration official compared Emanuel to a defensive end in football. "Very smart, super quick and agile, but getting hit by him, particularly when you were blindsided, felt like being run over by a truck," said the source.

Over those fifteen years as a staffer, Emanuel earned a take-no-prisoners reputation and a nickname -- "Rahmbo" -- to go with it. At times he was blunt to a fault, and alienated some of his administration colleagues.

House Minority Leader John Boehner (Ohio) seized on Emanuel's partisan reputation to condemn the choice.

"This is an ironic choice for a President-elect who has promised to change Washington, make politics more civil, and govern from the center," said Boehner in a statement.

But, Emanuel allies argue that the image of the Illinois Congressman as a partisan brawler is more myth than reality.

Emanuel regularly speaks with current White House chief of staff Josh Bolton and has even attended a baseball game with the Republican. He counts Sen. Lindsey Graham (R-S.C.), one of John McCain's closest allies, and retiring Rep. Ray LaHood (R-Ill.) as friends. And, Emanuel's allies point to SCHIP legislation and a G.I. Bill of Rights as examples of where he worked across the aisle to secure support.

Our sense on Emanuel is that he is the ultimate political pragmatist. He understands that Obama was elected in part (a major part) due to his promise to change the way politics is conducted in Washington. Does that mean Emanuel's tough minded approach to the intersection of politics and policy change? Absolutely not. But it does mean that Emanuel will understand that reaching across the aisle for Republican support is absolutely essential to Obama's political brand and will look for opportunities to do so.