Intel to make audio/visual gear chips for Panasonic under contract

By Noel Randewich

SAN FRANCISCO (Reuters) - Intel Corp said on Monday it would make chips for Panasonic for the audio- and visual-equipment markets, the latest expansion of Intel's contract manufacturing business in the face of slow personal computer sales.

With Intel far behind rivals in making chips for smartphones and tablets, the US chipmaker has said it wants to expand its contract manufacturing business, which currently contributes little to its overall revenue.

Intel will use its leading-edge 14 nanometer process technology to make system-on-chips for Panasonic's System LSI division for use in audio- visual-equipment markets, Intel said in a news release.

Last year, Intel announced it would make programmable chips on behalf of Altera, its largest publicly announced contract manufacturing deal to date.

Chips made with Intel's leading-edge manufacturing technology could give Panasonic a performance and power-consumption lead over chips made other contract manufacturers.

(Reporting by Noel Randewich; Editing by David Gregorio)