Intel chief executive Paul Otellini has unveiled advanced microchips for portable gadgets and home electronics, eyeing a new growth opportunity as its main computer processor market matures

Intel's microprocessors power some 80 per cent of the world's personal computers, but Mr Otellini made scant reference at the Consumer Electronics Show (CES) to PCs, which the company has pushed as digital media hubs at past CES showings.

"We're now in the midst of the largest opportunity to redefine consumer electronics and entertainment since the introduction of the television," Mr Otellini said in Las Vegas.

He focused on consumer devices, describing for the first time a new chip aimed at electronics such as set-top boxes, media players and televisions.

Dubbed "Canmore", the new chip is to go on sale in the second half of 2008 and will consist of a processor like those used in personal computers but augmented to handle high-definition video, surround sound and 3D graphics.

The emphasis on consumer gadgets comes as Intel has faced slowing growth in the PC industry. Its previous forays into electronics such as digital music players and chips for smaller devices have fizzled, while other moves such as its backing for the Wi-fi wireless technology have helped open up new markets.

"If anybody knows how to grow a new segment, it's Intel and when they've gotten into trouble is when they've strayed from their roots," said Nathan Brookwood, principal analyst at Insight 64.

The new areas targeted by Mr Otellini pit the company more squarely against diversified chipmakers such as Texas Instruments and South Korea's Samsung Electronics, rather than AMD, its principal competitor.

Mr Otellini said future devices would be capable of feats such as helping travellers instantly to translate signs and speech. Video games and virtual worlds eventually could be controlled by cameras that sense a user's body movements.

He cautioned however that Intel and others needed to make chips even smaller and more efficient, and that web access needed to get faster and more widespread. Hardware and software makers also needed to figure out ways to help users access information and more natural ways to interact with devices. - (Reuters)