Intel Corp. was not really successful with its Xscale microprocessors based on ARM (advanced RISC machine) for handheld devices, but the company does hope to return into handsets with its Atom processors once it makes it using 32nm process technology. In fact, discussions between Intel and handset makers are underway, the company said in an interview.

Intel’s chief financial officer Stacey Smith said in an interview with Financial Times news-paper that Intel Atom processor made using 32nm process technology will cost considerably less than the current version and will also consume substantially less energy. According to Mr. Smith, each 300mm wafer will be able to produce 2400 – 2500 die, or 400-500% more than new.

Since Intel Atom is based on x86 micro-architecture, “it has the full power of the Intel ecosystem behind it: that means being able to leverage much of the work already done by providers of applications, content and services for existing Intel technology,” said Mr. Smith.

Negotiations with handset manufacturers are ongoing, Intel indicated, however, there are no design wins so far. Still, Intel hopes that actual devices featuring 32nm version of Intel Atom will be available in 2009 or in early 2010. In fact, there are rumours that a new version of Apple iPhone will feature Intel Atom in about one and a half years from now.

The expansion of Intel Atom into handsets means more than additional revenue stream for Intel Corp. In fact, this is mirroring of AMD’s x86 everywhere strategy, under which there is hardly a place for other micro-architectures, such as ARM, Power, etc. Both Intel and AMD have been expanding the presence of x86 from personal computers to workstations and even high-end servers for years, now it seems to be the time when x86 hits handhelds.

Tags: Intel, Atom