Intel looks beyond the desktop

Intel yesterday confirmed its ambitions beyond being the world's largest supplier of chips for PCs and servers, when it announced plans to tackle the fledgling network-processor market.

The company said it wants to become the "leading supplier of communications building blocks", meaning it will provide chips for routers and switches from companies such as Cisco, Lucent and Nortel Networks.

Companies already performing this role include LSI Logic, MIPS Technologies and Motorola.

Current equipment typically uses ASIC (Application Specific Integrated Circuit) semiconductors. Intel's proposition means chips for networks will be programmable, allowing manufacturers to add features further on in development cycles.

At the beginning of March, Intel said it would acquire network chip provider Level One Communications for $2.2bn in stock, in line with Intel's increased focus on the networking market.