Intel is organizing two new significant business initiatives
based around entertainment PCs and consumer electronics in a bid to deliver its
existing silicon technology into a wide swath of new devices. Intel will move
silicon from inside the computer to outside the computer, but into a number of
other devices. To attack this new strategy, Intel has formed a new Consumer
Electronics Group, which will focus on migrating Intel processor technology into
non-PC, electronics solutions.

Intel for the first time demonstrated its Azalia audio
technology; an integrated wireless access point as part of its forthcoming
Grantsdale chips; and its forthcoming Prescott processor in a
consumer-electronics environment. A series of electronics manufacturers had all
agreed to produce "portable media players" based on Intel’s X-Scale processor.
Intel would roll out a new Liquid Crystal On Silicon (LCOS) display processing
technology–marking the chip maker’s entry into the fast-growing LCD and LCD-TV
space.