The company will continue to supply chips to gateway devices and set-top boxes but will wind down its Digital Home business. Digital Home Group staff will be relocated to focus on netbooks, smartphones and tablet devices.
Erik Huggers, a high profile appointment from BBC Future Media in January, will remain at Intel where he will lead a new group called Intel Media.
Intel’s decision is reportedly due to a lack of demand for its chipsets for internet-enabled flatscreen TVs. Intel’s Atom CE4100 chips currently are used to power to a variety of devices including Sony’s Google TVs and the Logitech Revue Google TV-enabled set-top, but also the D-Link Boxee box as well as French ISP Free’s Freebox Révolution and Liberty Global’s Samsung-built Horizon set-tops.