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Intel plans to release high-end mobile chips

Intel today announced plans to introduce new high-end XScale cell phone chips with video conferencing capabilities and DVD quality video playback chips for use on handheld PDAs.

Despite their $858 million loss last year, Intel still has high hopes. Executives claim the losses were a result of slower-than-expected roll-out of speedy wireless data connections, as well as the video and messaging services that take advantage of that speed. After failing to take off in the competitive mobile phone chip industry, Intel combined both communications and data networking businesses. Texas Instruments Inc. is still the largest supplier of cell phone chips.

“Advances in wireless broadband demand a new kind of wireless device,” said Sean Maloney, the Intel executive vice president who last year took command of the company’s newly combined communications group, in a statement.

The new XScale processors will handle many types of broadband access features and higher performance under lower power requirements, the chips are planned to hit production in Q2 of 2004.

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