Intel unveiling new chips for devices

A man looks over a display of laptops at the Intel booth during the Consumer Electronics Show in Las Vegas, Nevada January 7, 2008.

LAS VEGAS (Reuters) - Intel Corp Chief Executive Paul Otellini unveiled new microchips for portable gadgets and home electronics on Monday, saying advances in chip technology were making such devices more powerful than ever.

"We're now in the midst of the largest opportunity to redefine consumer electronics and entertainment since the introduction of the television," Otellini said in prepared remarks ahead of a keynote address to the Consumer Electronics Show.

As the world's largest chipmaker, Intel's microprocessors power some 80 percent of the world's personal computers, but Otellini made scant references to PCs, which the company has pushed as digital media hubs at past CES showings.

Instead, Otellini focused on consumer devices, describing for the first time a new chip aimed at electronics such as set-top boxes, media players and televisions.

Dubbed "Canmore", the new chip is to go on sale in the second half of 2008 and will consist of a processor like those used in personal computers but augmented to handle high-definition video, surround sound and 3D graphics.

"Packaging several important functions -- such as computing, graphics and audio-video processing -- into a single chip will help devices do more while taking up less space and energy," Otellini said.

The emphasis on consumer gadgets comes as Intel has faced slowing growth in the PC industry in recent years. Previous forays into electronics such as digital music players have fizzled, while other moves such as its backing for the Wi-fi wireless technology have helped open up new markets.

Also later this year, Intel plans to ship "Menlow", its first platform for mobile devices optimized for Web access, Otellini said. At the heart of the platform is a chip called "Silverthorne" that is five times smaller and uses 10 times less power than similar chips sold two years ago.

Otellini said future devices will have image recognition technology capable of feats such as helping travelers translate signs and recognize landmarks. Video games and virtual worlds eventually could be controlled by cameras that sense a user's body movements.

(Reporting by Scott Hillis)