Atom Processors Move Intel Into New Markets

Intel has taken the wraps off four new Atom processors and two control hub chips for use in low-power Relevant Products/Services embedded applications. It also announced a new memorandum of understanding under which customers of Taiwan-based chip foundry TSMC eventually will be able to produce customized Atom designs for embedded applications using TSMC's processes, IP, libraries and design flows.

"Its a bold move" that opens the door for Intel to become active in new markets, while "maintaining full control over the process" and "who we sell to," said Intel Executive Vice President Sean Maloney during a conference call with financial analysts. "I believe as we look forward to the next three to four years, more and more customers will need to embed full PC functionality into their devices," Maloney said.

Intel's agreement with TSMC is "all about the collaboration" required to expand the availability of Intel's Atom to customers through integration with TSMC's diverse IP infrastructure Relevant Products/Services, Intel Senior Vice President Anand Chandrasekhar said. Capacity should no longer be a long-term issue for Intel given its announcement last month that the chipmaker will invest $7 billion to build advanced 32nm manufacturing facilities in the United States over the next two years.

Intel believes the package size and low-power envelope of its new Atom Z5xx chips make them ideal for designing in-car infotainment systems, eco-technology devices, and next-generation media phones capable of delivering communication services over IP. But to really compete with ARM, Intel will need to remain focused on the mobile application space, where devices must run off batteries.

"That's really the area in which Intel has been trying to compete with ARM directly," Sibeco said. "And as they march down the Atom road map, a lot of the work they are doing is toward optimizing the power efficiency Relevant Products/Services of the processor."