Intel is planning to go into smart phone chip manufacturing along with the manufacturing of chips for the computers. The company is already in agreement with Nokia Oyj and LG Electronics Inc.
The chips in mobile phone that are responsible for running radio are called digital signal processors. The market of such chips are dominated by Qualcomm Inc. Intel recently purchased Infineon Technologies AG’s wireless unit and is planning to go into that field. Intel is also developing a chip called Atom to run phone programmes.
By entering into the field of chips for smart phones, Intel is reducing its dependence on the PC chips market. This is the clear indication of the growing potential of mobile and the related technologies associated with it.
Paul Otellini, Chief Executive Officer of Intel said that we can expect Intel chips in the smart phones from large manufacturers from the second half of next year (i.e. 2011).
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