Computer Solution

Intel Corp. has not had much luck moving beyond the slumping personal-computer business, so the chip giant is trying some unusual tactics to diversify.

In one of the clearest shifts to date, Intel on Monday said it would share some of its microprocessor technology with Taiwan Semiconductor Manufacturing Co., or TSMC, which builds chips to order for other manufacturers.

The deal will allow TSMC to build chips that combine Intel's ultra-small Atom microprocessor with circuitry that handles other chores. Financial terms were not disclosed.

The arrangement will help Intel, which ordinarily reserves microprocessor manufacturing for its own factories, enter non-PC markets more quickly and move beyond its practice of selling identical products to multiple customers.

Aided by TSMC, companies that make cellphones, consumer electronics and other products will be able to place custom orders for multi-function products that exploit Intel technology.

Intel has had limited success over the years expanding into chip markets for cellphones and consumer electronics like TVs and cable boxes.

The pressure on Intel to diversify is getting more intense as its core PC market deteriorates. Research firm Gartner Inc. on Monday predicted PC shipments will drop 12% in 2009, the largest annual decline on record, as the global economy continues to deteriorate