Intel on Monday said it plans to ship in the second half of the year a single integrated circuit that will provide digital video recorders and other TV-connected consumer electronics devices the platform needed to run Web applications much like a PC.

Paul Otellini, chief executive of Intel, demonstrated mobile Internet devices using Intel's "system on a chip" during his keynote address at the International Consumer Electronics Show in Las Vegas, Nev. The SoC, code-named Canmore, includes an Intel processor tightly integrated with other hardware for processing high-definition video, which means resolutions of 1080p; multichannel surround-sound audio; and 3-D graphics.

In addition, the integrated circuit would include security, a memory controller, and input/output technology important to consumer electronics, such as HDMI, which stands for high-definition multimedia interface. HDMI is used to connect digital audio/video sources, such as a DVR, to a digital TV. HDMI helps implement digital rights management technology to prevent illegal copying of content.

Consumer electronics is relatively new for Intel, which has built its multibillion-dollar business around supplying processors and chipsets for the computer industry. Current CE platform makers that would become competitors include Broadcom, Sigma Electronics, and Texas Instruments.

Intel believes it has an upper hand on rivals in that it can offer hardware manufacturers an infrastructure for Web applications that would run on top of Linux and Windows. One advantage is the availability today of developer tools for building software for those operating systems on top of Intel hardware.

As a result, development costs would be less and options for services more diverse than with proprietary platforms offered by competitors, Eric Kim, senior VP for Intel's Digital Home Group, told InformationWeek before Otellini's keynote. "That is a fundamentally profound value."

The trend toward Internet-connected set-top boxes already has begun. TiVo, for example, offers Web services through its namesake DVR. The platform, however, is limited to specific services, which usually are accessed through a Web portal.

Intel's goal is to eventually provide the hardware needed to power software that would offer a Web experience in which people could access any services they want, and not just those offered by a set-top box maker.

Intel plans to make its CE platform available in the second half of the year, Kim said. Manufacturers are expected to demonstrate products using Canmore at CES 2009. Kim declined to name the manufacturers.

Linux is the dominant operating system in set-top boxes and DVRs today. Microsoft, however, is working hard to make Windows a more important player in the market. The company already has turned the PC into a set-top box through Windows Media Center, which also is a part of Windows Vista, which was released about a year ago.

While the PC is far more flexible and has more capabilities than a set-top box, the latter would be far simpler to operate while watching TV. Therefore, it makes sense to use the set-top box in accessing content, such as on-demand video or photos on a social network, while also being able to make some purchases, such as for music, movie tickets, or even some retail items.

Besides Intel's upcoming SoC, Otellini demonstrated an emerging category of consumer electronics called a "mobile Internet device," or MID, which falls between a cellular phone and a PC. The keynote demonstration was of a device with visual recognition software that enabled it to recognize, for example, a sign in a foreign country and translate it into English. The device also could perform speech translation, and used an Internet connection to offer information on landmarks and to offer street maps and personal navigation.

While the devices look good during keynote demonstrations, they're unlikely to become popular until wireless broadband connections become as ubiquitous as cellular networks. Such connections are still several years away, experts say.

Intel, however, has developed a MID platform called Menlow, which will start shipping this quarter. Menlow includes a new low-power 45-nm processor code-named Silverthorne.