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Intel Shows Off LG Smartphone That Runs on Atom Chip

Intel Corp. Chief Executive Officer Paul Otellini showed off a smartphone based on a new version of the Atom chip, part of the semiconductor maker’s strategy to break into the wireless-phone market.

The GW900 phone from LG Electronics Inc. runs on a chip called Moorestown that will go on sale in the first half of the year, Otellini said today at the Consumer Electronics Show in Las Vegas. Devices based on the chip will debut in the second half, he said.

Otellini offered the LG phone as evidence that Intel, the world’s biggest chipmaker, is making inroads into the wireless- handset business. Intel, based in Santa Clara, California, is working to fend off challenges by Qualcomm Inc. and other phone- chip makers, which are pushing their products into portable computers — until now the exclusive domain of Atom.

Intel is also seeking to tap what chipmakers see as their next area of growth: consumer electronics, cars and industrial equipment with Internet connections. Otellini, 59, demonstrated a television set-top box, tablet computer and another smartphone design, all based on versions of Atom.

Intel fell 20 cents, or 1 percent, to $20.60 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares climbed 39 percent last year.

This week, Qualcomm and other makers of chips for phones have announced partnerships and unveiled designs that encroach on Intel’s turf. San Diego-based Qualcomm said yesterday that it’s working with Hewlett-Packard Co., the world’s biggest personal-computer maker, on a scaled-down notebook computer.

Intel makes more than 80 percent of PC processors — the brains of computers. It aims to use its Atom product, which runs small laptops known as netbooks, to break into chips for wireless devices. That market is estimated to increase 14 percent to more than $46 billion this year, according to researcher IDC, in Framingham, Massachusetts.

The annual Consumer Electronics Show, which began in 1967 in New York, has given rise to the videocassette recorder in 1970, the compact-disc player in 1981, the DVD in 1996 and plasma TV in 2001.

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