Intel Pushes Past the PC

Looking outside the PC, Intel discussed a system-on-a-chip aimed at high-definition televisions and set-top boxes that is slated for release next year. And the company said that the Menlow package of chips, designed for mobile Internet devices, are on track for the second half of 2007.

Among the key technologies in Menlow is WiMax, a new wireless data-transmission standard similar to Wi-Fi, but with a longer range and faster speeds.

Otellini said the company had invested an undisclosed sum in setting up WiMax service in Japan with KDDI, building on Intel's previous WiMax investments, such as a deal with service provider Clearwire.

"WiMax is, from our perspective, the network that these things will be connected to because of its ubiquity and its low cost," he said.

While WiMax service is still in the trial stage, Intel plans to offer the technology in mainstream notebook PCs next May with the launch of its Montevina platform. According to Otellini, PC makers Lenovo, Acer, Toshiba and Panasonic have already committed to offering laptops featuring WiMax next year.

Otellini also hinted that Intel may be thinking of expanding its role in the world of graphics acceleration processors.

The company's so-called Larrabee chip, a multicore processor aimed at high-end computing applications such as physics and financial services, might also make a capable stand-alone graphics chip similar to those made by Nvidia(NVDA) and ATI.

Otellini said that Larrabee will "move Intel into the discrete graphics," during his keynote presentation. But when asked to elaborate on the comment during a subsequent Q&A with the press, he ducked the question and said only that among Larrabee's applications are high-end graphics.

Shares of Intel, helped by Tuesday's Fed rate-cut rally, closed at $25.41, up 2.3%.

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