INTEL CORP
SC 13D/A, 1997-10-03
SEMICONDUCTORS & RELATED DEVICES
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               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549
                                
                         SCHEDULE 13D/A
                       (Amendment No. 19)
                                
            Under the Securities Exchange Act of 1934
                                
                      VLSI TECHNOLOGY, INC.
                        (Name of Issuer)
                                
                          Common Stock
                 (Title of Class of Securities)
                                
                           918270 10 9
                         (CUSIP Number)
                                
                        F. Thomas Dunlap
          Vice President, General Counsel and Secretary
                        Intel Corporation
                 2200 Mission College Boulevard
                      Santa Clara, CA 95052
                    Telephone: (408) 765-8080
          (Name, Address and Telephone Number of Person
        Authorized to Receive Notices and Communications)
                                
                         October 1, 1997
                  (Date of Event which Requires
                    Filing of this Statement)
                                
If the filing person has previously filed a statement on Schedule
13G  to  report  the  acquisition which is the  subject  of  this
Schedule  13D, and is filing this schedule because of Rule  13d-1
(b)(3) or (4), check the following box [  ].

NOTE:   Six  copies  of this statement, including  all  exhibits,
should be filed with the Commission.  See Rule 13d-1(a) for other
parties to whom copies are to be sent.

The  information  required on the remainder of  this  cover  page
shall  not be deemed to be "filed" for the purpose of Section  18
of  the  Securities Exchange Act of 1934 (the "Act") or otherwise
subject  to the liabilities of that section of the Act but  shall
be subject to all other provisions of the Act.

                 (continued on following pages)
                                
                          Page 1 of 11
                                
                                
                                
<PAGE>

CUSIP No. 918270 10 9          13D                   Page 2 of 11

1.   NAME OF REPORTING PERSON                      Intel
                                                   Corporation
     S.S.  OR  I.R.S. IDENTIFICATION NO. OF  ABOVE 94-1672743
     PERSON
                                                   
2.   CHECK  THE APPROPRIATE BOX IF A MEMBER  OF  A     (a) [   ]
     GROUP                                             (b) [   ]
                                                   
3.   SEC USE ONLY                                  
                                                   
4.   SOURCE OF FUNDS                               WC
                                                   
5.   CHECK  BOX IF DISCLOSURE OF LEGAL PROCEEDINGS         [   ]
     IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)
                                                   
6.   CITIZENSHIP OR PLACE OF ORGANIZATION          Delaware
                                                   
  NUMBER OF   7.     SOLE VOTING POWER             N/A
   SHARES                                          
BENEFICIALLY  8.     SHARED VOTING POWER           N/A
  OWNED BY                                         
    EACH      9.     SOLE DISPOSITIVE POWER        N/A
  REPORTING                                        
 PERSON WITH  10.    SHARED DISPOSITIVE POWER      N/A
                                                   
11.  AGGREGATE AMOUNT BENEFICIALLY OWNED  BY  EACH -0-
     REPORTING PERSON
                                                   
12.  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)          [   ]
     EXCLUDES CERTAIN SHARES
                                                   
13.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW             0%
     (11)
                                                   
14.  TYPE OF REPORTING PERSON                                  CO

<PAGE>

CUSIP No. 918270 10 9          13D                   Page 3 of 11

ITEM 2.   Identity and Background.
                 
          (a)    Name of Person Filing:
                 
                 Intel Corporation
                 
          (b)    Address of Principal Business Office:
                 
                 2200 Mission College Boulevard
                 Santa Clara, CA 95052-8119
                 
          (c)    Principal Business:
                 
                 Manufacturer   of   microcomputer   components,
                 modules and systems
                 
          (d)    Criminal Proceedings:
                 
                 During   the  last  five  years,  neither   the
                 Reporting  Person nor any executive officer  or
                 director  of  the  Reporting  Person  has  been
                 convicted in any criminal proceeding.
                 
          (e)    Civil Proceedings:
                 
                 During   the  last  five  years,  neither   the
                 Reporting  Person nor any executive officer  or
                 director of the Reporting Person has been party
                 to  any  civil  proceeding  of  a  judicial  or
                 administrative  body of competent  jurisdiction
                 as  a  result of which such person  was  or  is
                 subject to any judgment, decree or final  order
                 enjoining  future violations of, or prohibiting
                 or  mandating activities subject to, Federal or
                 State  securities laws or finding any violation
                 with respect to such laws.
                 
          (f)    Place of Organization:
                 
                 Delaware
                 
          Attached  hereto as Appendix A is information required
          by  this Item 2 with respect to the executive officers
          and  directors  of  the Reporting  Person.   All  such
          individuals are U.S. citizens.
                 
ITEM 5.   Interest in Securities of the Issuer.
                 
          (a)    Number       of      Shares  -0- shares
                 Beneficially Owned:
                                              
                 Right to Acquire:            -0- shares
                                              
<PAGE>

CUSIP No. 918270 10 9          13D                   Page 4 of 11

                 Percent of Class:               0%
                 
          (b)    Sole Power to Vote, Direct  the 
                 Vote  of, Dispose of, or Direct -0- shares
                 the Disposition of Shares:
                 
          (c)    Recent Transactions:            
                 
                 On  October 1, 1997, the Reporting Person  sold
                 2,677,604  shares of the Issuer's Common  Stock
                 in  open  market transactions  at  a  price  of
                 $35.50 per share.
                 
                 On  October  1,  1997,  European  style,  cash-
                 settled  put options purchased by the Reporting
                 Person  in  March and April 1995,  covering  an
                 aggregate  of 2,677,604 shares of the  Issuer's
                 Common  Stock,  expired out of the  money.   On
                 October  1,  1997, European style, cash-settled
                 call  options sold by the Reporting  Person  in
                 February,  March  and April 1995,  covering  an
                 aggregate  of 2,677,604 shares of the  Issuer's
                 Common    Stock,   were   exercised   by    the
                 counterparties  thereto.  Upon settlement,  the
                 Reporting  Person  will  pay  to  each  of  the
                 counterparties cash in an amount equal  to  the
                 difference  between  $35.50  minus  the  strike
                 prices  of the call options, multiplied by  the
                 number  of shares covered by the call  options.
                 See  Exhibit 3.1 to Amendment No.  16  of  this
                 Schedule 13D for further details regarding  the
                 put options purchased and call options sold  by
                 the Reporting Person.
                 
          (d)    Rights    with    Respect    to  
                 Dividends or Sales Proceeds:     N/A
                                                  
          (e)    Date   of  Cessation  of   Five  
                 Percent Beneficial Ownership:    10/1/97
          
<PAGE>

CUSIP No. 918270 10 9          13D                   Page 5 of 11

                            SIGNATURE
                                
After  reasonable  inquiry and to the best of  my  knowledge  and
belief,  I  certify  that  the  information  set  forth  in  this
statement is true, complete and correct.

Dated as of October 2, 1997.     
                                 
                                 INTEL CORPORATION
                                 
                                 
                                 By:  /s/F. Thomas Dunlap, Jr.
                                      F. Thomas Dunlap, Jr.
                                      Vice President, General
                                      Counsel and Secretary




<PAGE>

CUSIP No. 918270 10 9          13D                   Page 6 of 11

                           APPENDIX A
                                
                            DIRECTORS
                                
The following is a list of all Directors of Intel Corporation and
certain other information with respect to each Director:

Name:           Craig R. Barrett
                
Business        2200 Mission College Boulevard, Santa Clara, CA
Address:        95052
                
Principal       President and Chief Operating Officer of Intel
Occupation:     Corporation
                
Name,           Intel Corporation, a manufacturer of
principal       microcomputer components, modules and systems.
business and    2200 Mission College Boulevard
address of      Santa Clara, CA 95052
corporation or
other
organization
in which
employment is
conducted:
                
                
Name:           John Browne
                
Business        The British Petroleum Company plc, Britannic
Address:        House, 1 Finsbury Circus, London EC2M 7BA
                
Principal       Group Chief Executive
Occupation:
                
Name,           The British Petroleum Company plc, an integrated
principal       oil company.
business and    Britannic House, 1 Finsbury Circus
address of      London EC2M 7BA
corporation or
other
organization
in which
employment is
conducted:
                
                
<PAGE>

CUSIP No. 918270 10 9          13D                   Page 7 of 11

Name:             Winston H. Chen
                  
Business          Paramitas Foundation, 3945 Freedom Circle,
Address:          Suite 760, Santa Clara, CA 95054
                  
Principal         Chairman of Paramitas Foundation
Occupation:
                  
Name, principal   Paramitas Foundation, a charitable foundation.
business and      3945 Freedom Circle, Suite 760
address of        Santa Clara, CA 95054
corporation or
other
organization in
which employment
is conducted:
                  
                  
Name:             Andrew S. Grove
                  
Business          2200 Mission College Boulevard, Santa Clara,
Address:          CA 95052
                  
Principal         Chairman of the Board of Directors and Chief
Occupation:       Executive Officer of Intel Corporation
                  
Name, principal   Intel Corporation, a manufacturer of
business and      microcomputer components, modules and systems.
address of        2200 Mission College Boulevard
corporation or    Santa Clara, CA 95052
other
organization in
which employment
is conducted:
                  
                  
Name:             D. James Guzy
                  
Business          1340 Arbor Road, Menlo Park, CA 94025
Address:
                  
Principal         Chairman of The Arbor Company
Occupation:
                  
Name, principal   The Arbor Company, a limited partnership
business and      engaged in the electronics and computer
address of        industry.
corporation or    1340 Arbor Road
other             Menlo Park, CA 94025
organization in
which employment
is conducted:
                  
                  
<PAGE>

CUSIP No. 918270 10 9          13D                   Page 8 of 11

Name:             Gordon E. Moore
                  
Business          2200 Mission College Boulevard, Santa Clara,
Address:          CA 95052
                  
Principal         Chairman Emeritus of the Board of Intel
Occupation:       Corporation
                  
Name, principal   Intel Corporation, a manufacturer of
business and      microcomputer components, modules and systems.
address of        2200 Mission College Boulevard
corporation or    Santa Clara, CA 95052
other
organization in
which employment
is conducted:
                  
                  
Name:             Arthur Rock
                  
Business          One Maritime Plaza, Suite 1220, San Francisco,
Address:          CA 94111
                  
Principal         Venture Capitalist
Occupation:
                  
Name, principal   Arthur Rock and Company, a venture capital
business and      firm.
address of        One Maritime Plaza, Suite 1220
corporation or    San Francisco, CA 94111
other
organization in
which employment
is conducted:


Name:             Jane E. Shaw
                  
Business          c/o Intel Corporation, 2200 Mission College
Address:          Boulevard, Santa Clara, CA 95052
                  
Principal         Founder of The Stable Network, a
Occupation:       biopharmaceutical consulting company
                  
Name, principal   c/o Intel Corporation
business and      2200 Mission College Boulevard
address of        Santa Clara, CA 95052
corporation or
other
organization in
which employment
is conducted:
                  
                  
<PAGE>

CUSIP No. 918270 10 9          13D                   Page 9 of 11

Name:             Leslie L. Vadasz
                  
Business          2200 Mission College Boulevard, Santa Clara,
Address:          CA 95052
                  
Principal         Senior Vice President, Director, Corporate
Occupation:       Business Development, Intel Corporation
                  
Name, principal   Intel Corporation, a manufacturer of
business and      microcomputer components, modules and systems.
address of        2200 Mission College Boulevard
corporation or    Santa Clara, CA 95052
other
organization in
which employment
is conducted:
                  
                  
Name:             David B. Yoffie
                  
Business          Harvard Business School, Soldiers Field Park 1-
Address:          411, Boston, MA 92163
                  
Principal         Max and Doris Starr Professor of International
Occupation:       Business Administration
                  
Name, principal   Harvard Business School, an educational
business and      institution.
address of        Harvard Business School
corporation or    Soldiers Field Park 1-411
other             Boston, MA 92163
organization in
which employment
is conducted:
                  
                  
Name:             Charles E. Young
                  
Business          405 Hilgard Avenue, Los Angeles, CA 90024
Address:
                  
Principal         Chancellor Emeritus
Occupation:
                  
Name, principal   University of California at Los Angeles, an
business and      educational institution.
address of        405 Hilgard Avenue
corporation or    Los Angeles, CA 90024
other
organization in
which employment
is conducted:

<PAGE>

CUSIP No. 918270 10 9          13D                  Page 10 of 11

                       EXECUTIVE OFFICERS
                                
The  following  is  a  list of all executive  officers  of  Intel
Corporation excluding executive officers who are also  directors.
Unless  otherwise indicated, each officer's business  address  is
2200  Mission  College Boulevard, Santa Clara, California  95052-
8119, which address is Intel Corporation's business address.

Name:       Frank C. Gill
Title:      Executive  Vice President, General Manager,  Internet
            and Communications Group
Address:    5200  N.E.  Elam Young Parkway, Hillsboro, OR  97124-
            6497
            
Name:       Paul S. Otellini
Title:      Executive   Vice  President,  Director,   Sales   and
            Marketing Group
            
Name:       Gerhard H. Parker
Title:      Executive Vice President, General Manager, Technology
            and Manufacturing Group
            
Name:       Ronald J. Whittier
Title:      Senior Vice President, General Manager, Content Group
            
Name:       Albert Y. C. Yu
Title:      Senior     Vice    President,    General     Manager,
            Microprocessor Products Group
            
Name:       Michael A. Aymar
Title:      Vice  President,  General Manager,  Desktop  Products
            Group
            
Name:       Andy D. Bryant
Title:      Vice President and Chief Financial Officer
            
Name:       Dennis L. Carter
Title:      Vice President, Director, Sales and Marketing Group
            
Name:       F. Thomas Dunlap, Jr.
Title:      Vice President, General Counsel and Secretary
            
Name:       Patrick P. Gelsinger
Title:      Vice  President,  General Manager,  Desktop  Products
            Group
Address:    5200  N.E.  Elam Young Parkway, Hillsboro, OR  97124-
            6497
            
Name:       John H. F. Miner
Title:      Vice  President,  General Manager, Enterprise  Server
            Group
Address:    5200  N.E.  Elam Young Parkway, Hillsboro, OR  97124-
            6497
            
<PAGE>

CUSIP No. 918270 10 9          13D                  Page 11 of 11

Name:       Stephen P. Nachtsheim
Title:      Vice   President,  General  Manager,  Mobile/Handheld
            Products Group
            
Name:       Ronald J. Smith
Title:      Vice    President,    General   Manager,    Computing
            Enhancement Group
            
Name:       Arvind Sodhani
Title:      Vice President, Treasurer
            
Name:       Michael R. Splinter
Title:      Vice President, Assistant General Manager, Technology
            and Manufacturing
            Group





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