Intel Expects to See the Rising Demand for Embedded Chips

According to Intel, the demand for embedded microprocessor chips represents $15 billion opportunity that ranges from Cars to Electrical Grid.  The company expects to speed up the demand for embedded Microchip as Intel grows beyond the core area of computer chips. Doug Davis, head of Intel’s Embedded and Communications Group, said in an interview that he expects that the market for embedded chips will grow 25 percent a year during the next four or five years which is more than 18 percent annual growth in 2002-08.

And less than two weeks ago the company said it would buy security-software maker McAfee for $7.7 billion, its biggest-ever acquisition, to bolster the appeal of its chips in the market for Web-connected gadgets.

Hans Vestberg, chief executive of cellphone maker Ericsson, projected that there are going to be 50 billion connected objects by 2020 as the objects are getting more and more smarter. Intel agreed to buy the wireless unit of German chipmaker Infineon for $1.4 billion this week as it tries to penetrate more in the booming smartphone market and cuts dependence on personal computers. The company announced less than two week ago that it would buy security-software maker McAfee for $7.7 billion. This is the biggest-ever acquisition of Intel which will strengthen the appeal of its chips in the market for Web-connected gadgets.