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Edition: U.S. Article Comments (0) Global Technology Summit HTC to tap tablet boom with many models Nvidia head sees competition for iPad AOL says no thanks to private equity Orange backs Apple plan for smaller SIM card High costs may delay new wafer technology AOL expands local news network in U.S. Mobile generation upends tech AT&T plans consumer security service for 2012 ARM sees limited hit from quake, upbeat on prices Samsung sees better LCD performance Smartcard maker Gemalto bets on security Video: AOL’s Tim Armstrong talks tech Comment: Do you play online games? 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Email Print Related News Nvidia head sees competition for iPad 9:18am EDT Nvidia head sees Android beating Apple Mon, May 16 2011 Nvidia beats Street but stock sags on PC worries Thu, May 12 2011 Google launches Chrome PCs, takes on Microsoft Thu, May 12 2011 Intel ups dividend 16 percent to boost laggard stock Wed, May 11 2011 Analysis & Opinion Rent-a-Google Tech wrap: RIM’s Playbook recall Related Topics Technology Home » A sign is shown at the entrance to the headquarters of Intel Corporation in Santa Clara, California in this February 2, 2010 file photo. Credit: Reuters/Robert Galbraith By Noel Randewich NEW YORK | Tue May 17, 2011 3:13pm EDT NEW YORK (Reuters) - Intel's chief executive rejected speculation the world's largest chipmaker might adopt rival ARM Holdings' technology to build mobile chips, and said smartphones using its silicon would go on sale next year. Intel has failed so far to get its processors into smartphones and tablets, a red-hot market where chips designed with battery-friendly technology from Britain's ARM Holdings are quickly becoming a standard. Some experts say Intel's architecture, originally aimed at PCs, is inherently tough to adapt to make mobile chips and that Intel should license ARM's technology, a suggestion that Chief Executive Paul Otellini rejected at his company's annual investor event in Santa Clara, California. "There's no advantage going in there, we'd be beholden to someone else, beholden to ARM. We'd pay royalties to them so it would lower the overall profits," Otellini said. "I think we can do a better." Intel executives also said consumers in China and other emerging markets who are buying personal computers for the first time are driving healthy growth in the company's core business. Shares of Intel have surged about 19 percent since the company's record quarterly earnings handily beat expectations on April 19. But investors remain concerned about PC sales and industry heavyweight Hewlett-Packard on Tuesday slashed its full-year outlook. [nN17131511] Intel's stock was down 0.59 percent at $23.50 in afternoon trade. NEW CHIPS Intel, whose chips are the brains in 80 percent of the world's PCs, is rushing to improve the power consumption of its mobile processors, with new chips being launched for tablets and smartphones. This month, Intel took the wraps off next-generation technology that crams more transistors onto microchips, betting it will eventually become a significant advantage in tablets and smartphones, where Qualcomm, Texas Instruments and Nvidia are key players and use ARM. Intel claims the new manufacturing process delivers as much as a 37 percent jump in performance while consuming less electricity -- a key ARM selling point. "To be fair, process technology is just one important element of winning for Intel, but it is a major advantage and one we suspect the Street is underestimating," Raymond James analyst Hans Mosesmann said in a note to clients. Concern about Intel's lack of progress in the mobile segment has weighed on its stock, which is trading at 10 expected annual earnings, much cheaper than peers like Texas Instruments at 13 times and Advanced Micro Devices at 14 times. The market for mobile chips is still tiny compared to Intel's PC processor business, but investors expect it to grow quickly. Smartphones using Intel's new Medfield chip will go on sale early next year, executives said. "With Medfield we're in the power envelope for phones ... We're working with several customers and we start to expect to see the revenue ramp toward the end of this year," Chief Financial Officer Stacy Smith said. In April, Intel introduced a new chip for tablets, codenamed Oak Trail, and says 35 upcoming tablets and hybrid computer devices made by companies including Fujitsu and Lenovo. (Reporting by Noel Randewich; Editing by Tim Dobbyn, Bernard Orr) Technology Home Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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