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Intel Unveils Wireless Chip For Cell Phones


Chipmaker hopes its new processor will pave the way for moderately priced cell phones that combine voice and Internet access.

By Larry Greenemeier
InformationWeek
February 13, 2003 12:00 AM

In a move to bring its special blend of high-volume manufacturing and standardized technology to the cellular phone market, Intel on Thursday shed more light on its new PXA800F processor. The chipmaker is hoping the PXA800F, which contains a 312-MHz XScale processor core and 4 Mbytes of flash memory integrated on the same chip, will pave the way for moderately priced cell phones that offer a combination of voice communication and Internet access.

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This could prove a challenge to the world's leading provider of flash memory, which is looking for ways to offset slowing growth in the PC industry. While Intel has begun shipping the PXA800F in small volumes, it has yet to identify any major cell-phone makers that are using the new processor. The company says the PXA800F will begin shipping in larger volumes during the second half of the year and appear in handsets by year's end.

The PXA800F is part of Intel's Personal Internet Client Architecture, the company's blueprint for designing wireless handheld devices that include camera, color screen, games, and other capabilities in addition to voice communications. These functions will appeal to wireless carriers, including AT&T, Cingular, Sprint PCS, and Verizon, all of which are looking for new ways to keep their customers on the line. "We're talking about bringing more minutes for them," says Dennis Sheehan, director of marketing for Intel's personal client architecture group.

The processor also is being aimed at mobile-phone makers developing products for high-speed wireless networks, such as GPRS (General Pack Radio Service) networks. The PXA800F is most likely to be used in cell phones priced from $100 to $250. Intel's PXA250 and PXA260 processor lines will continue to be used in more advanced, and expensive, handheld devices that run the PocketPC or Palm OS operating systems.

Intel has yet to reveal any A-list phone makers on board with its wireless-Internet-on-a-chip technology. It says it has manufacturing agreements with a number of smaller players worldwide, including Taiwan's Wistron Corp. and Korea's Maxon Telecom Co.

There's a lot riding on the success of Intel's integrated wireless chip design, says one analyst. If the PXA800F is successful in keeping manufacturing costs down and creating a design standard for the cell phone market, it could bring more cell-phone makers into the market, says Warren Wilson, director of Summit Strategies' mobile and wireless business solutions practice.

"A lot of carriers pay subsidies to get their services out on the market," Wilson says. "If you drive the prices down and performance up, you make it easier to build on top of the chip, and you allow someone to come into the market that doesn't need the deep pockets of a Nokia."

Wilson isn't concerned with Intel's lack of original equipment maker partners for the chip. "That signifies this is a work in progress," he says. "But given Intel's track record in other markets, it's safe to say they'll be a player in this market."



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