| SAN FRANCISCO
SAN FRANCISCO Oct 8 Intel Corp talked
up new chips on Tuesday aimed at medical equipment, automobile
entertainment systems and other devices far from its shrinking
core market of personal computers.
Intel and other technology companies are betting that what
they call the "Internet of Things" -- a trend toward connecting
everything from bathroom scales, to factory robots and
skyscraper ventilation systems to the Internet - will create
massive demand for new electronics and software over the next
Close to a dozen electronics manufacturers have started
using Intel's new Atom E3800 chip, a variant of Intel's
low-power mobile processors, Ton Steenman, general manager of
Intel's Intelligent Systems Group, told reporters at an event.
"It will allow us to reach into a whole new set of
applications and billions of devices we have never been able to
delve into before," Steenman said of the new chip.
He said the Atom chips became available this quarter and
offer features useful in industrial machines, like error
correction and the ability to withstand high temperatures.
A smaller, scaled down chip, part of Intel's recently
announced Quark line of very low-power components, is due to
begin shipping in the first quarter of 2014.
The world's biggest chipmaker, Intel dominates the PC
industry but it was slow to adapt its chips to be suitable for
smartphones and tablets.
The Santa Clara, California company is now scrambling to tap
into new markets to help it keep its multi-billion dollar
fabrication plants humming near full capacity and protect its
enviable 63-percent gross margins.
Steenman declined to say when he expects chips aimed at the
Internet of Things to deliver meaningful sales for Intel, which
had revenue of $53 billion last year. He also declined to say
how much Intel would charge for the chips.
Patrick Moorhead, an analyst at Moor Insights and Strategy,
estimated that the Atom chips likely sell for between $20 and
$50 each, while the Quark chips may be priced near $5 a piece.
By comparison, Intel's powerful, and highly profitable, Xeon
chips for servers typically sell for hundreds or even thousands
of dollars each.