Last year about this time Intel introduced the Atom processor, a new family of low-power processors designed specifically for mobile Internet devices (MIDs) and  affordable Internet-centric computers or netbooks.  The introdution was a deliberate move by Intel to tap into what it believes will be a substantial market for a new category of low-cost, Internet-centric mobile computing devices, "netbooks",  and basic Internet-centric desktop PCs dubbed "nettops".

This year Intel is getting ready to launch an even lower power processor with significantly more functionality, code-named "Moorestown," the new chip  contains all the components of a computer, its a "system on a chip".  Moorestown is actually two chips. One chip is the Atom processing core handling graphics, video, and memory control.  The second chip is adaptable to the device on which it is installed and is capable of enabling a range of tasks such as digital imaging and high-end audio.

Like its move last year to tap into the netbook market, Intel is aiming its sites this year on an even larger, faster growing market of mobile devices. CEO Paul Otellini is confident that Intel can conquer this new market, in his view the convergence of mobile devices and PC's is  healthy for Intel since they are approaching it from a position of strength.  Otellini states that "All consumer electronics - and I mean all - are aimed at bringing the Internet into devices", and with the Internet comes the rich content and applications that users have come to expect on their desktops. 

Here is an example of Moorestown capabilities on YouTube.

Another one on blip.tv