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June 3, 2008

Intel CEO Paul Otellini says that as mobile phones become more like computers, the company believes it can make inroads in that market.

Two years ago, Intel left the handset market when it sold its X-Scale division to Marvell.

Otellini said “if you accept that the value proposition of the high end of the mobile phone market is full Internet access that happens to have voice, my view is that it's easier to add voice to a small computer than vice-versa.”

Intel said it will start pushing its Atom chipset and plans to launch a version optimized for mobile phones in September 2009.

Atom is a line of CPUs designed for use in ultra-mobile PCs, smartphones and other small portable devices that don't consume too much battery power.

Intel isn't the only chip supplier looking to expand its mobile offerings.

Other cell phone chip makers are looking to make chipsets for small devices referred to as Mobile Internet Devices (MIDs).

Qualcomm, Texas Instruments, Samsung Electronics and others who license technology from ARM Holdings are all looking to make products that power MIDs, as well as Intel rival Nvidia.

Nvidia, which makes graphics chips, plans to announce its first chips for MIDs as soon as today.

Nvidia is reportedly calling the chipset Tegra.

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Source: Intel.