BMW, Mercedes to Use Intel Atom-chips

Technology company Intel Corp will receive some additional business from the German car industry and heavy machinery sector in the coming years, its head of German operations said.

Premium German car makers BMW and Mercedes will be using Intel's microprocessor chips in information and entertainment systems in their automobiles from 2012, Hannes Schwaderer told Reuters in an interview on Friday. "We have also won new customers in the durable goods industry such as Bosch Rexroth", he added. German producers of televisions and settop boxes would also soon implement the new generation of Atom-chips - which are designed for use in netbooks and mobile devices. "In 2009 we have basically seen no revenue from that but that will start to change already in 2010," Schwaderer added. Intel's classic business with chips for personal computers and servers will continue to dominate in the immediate future. Last year, business in Germany remained stable thanks to solid demand for laptops, Schwaderer said, adding the consumer division compensated for a decline in corporate business. Schwaderer said he expected Intel's new line of notebooks and desktops to be launched soon in Germany, adding: "We are counting on profitable growth." Intel, based in Santa Clara, California, reported stronger-than-expected fourth-quarter earnings on Thursday and gave a bullish margin outlook on higher prices and firm demand for server chips.