Intel is looking to diversify into more markets in addition to its core PC chip business. To do this Intel is looking at four different markets that it feels will be worth about $40 billion.
Intel CEO Paul Otellini said at the annual investor’s day that Intel would target low cost PCs, mobile Internet devices, consumer electronics and the embedded systems space. Otellini claims each of these markets are worth $10 billion.
“It’s not just the 1 billion people that have access to the Internet now. It’s the next 2 billion people,” said Otellini. “It’s not just about selling more PCs, but bringing new devices and new price points to bring those people onto the Internet.”
The common unifying factor in all four of the new target markets is the recently released Intel Atom processor, also known by the codename Silverthorne. Intel officially launched its Atom processor earlier this week. The purpose-built CPU is built on the 45nm manufacturing process and designed to be able to operate on less than one Watt.
“We are not talking about repurposing old silicon, but designing new silicon
for each of these different areas,” Otellini added.
Silverthorne-based Atom processors fit in thermal envelopes ranging from 0.6W to 2.5W making it perfect for targeting the four markets Intel is aiming for. The Atom processor is the key to these four markets as it will allow OEMs to build hardware and software for these markets without having to make drastic changes to the platform.
Otellini says devices using the new Atom processors will come to market by Q2 2008. Using the Atom processors should provide for what Intel calls “netbooks” in the $200 to $300 price range. The embedded market is very diverse ranging from cell phones to cameras and much more.