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And the Associated Press version of the story:

Intel Cancels TV Chip Project


By MATTHEW FORDAHL AP Technology Writer

Updated: Thursday, Oct. 21, 2004 - 10:04 PM

SAN JOSE, Calif. (AP) - In another change of plans, semiconductor giant Intel Corp. canceled a project Thursday to develop a chip for projection TVs and said it planned to focus its resources in other areas.


The company's plans to develop a liquid on crystal silicon chip, or LCoS, were first unveiled in January during the Consumer Electronics Show in Las Vegas. In August, Intel said it would not be released by the end of the year, as originally announced.


The cancellation came as the company was assessing its 2005 budget and analyzing its investment in the technology, said Bill Calder, an Intel spokesman.


"We looked at the investment required, the returns and the timetable to get to those returns, and we decided it's better for us to focus our resources in other areas," he said.


LCoS competes against other new display technologies that have already invigorated the rear-projection TV market, most notably the digital light processing (DLP) chip pioneered by Texas Instruments Inc.


Analysts said Intel's move into the market could have made big-screen TVs less expensive _ much like what its microprocessors did for personal computers over the past 30 years.


In recent months, Intel has made a number of changes in its product plans, including the cancelation of a 4-gigahertz Pentium 4 that had been scheduled to ship early next year.


In May, it canceled work on a next-generation Pentium 4 so that it could focus on more promising technologies. In June, a manufacturing glitch forced a small recall of chip sets, which handle communications between the processor and the rest of the system.


Then, in July, the company said design problems would delay the release of mobile computer chip set dubbed Alviso until next year. And it said better-than-expected performance in manufacturing of Pentium 4s resulted in an inventory buildup.


Shares of Intel closed at $21.69, down 24 cents, in Thursday trading on the Nasdaq Stock Market. In the extended session, they lost another 4 cents.
 

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LG 55" C9 OLED, Yamaha RX-A660, Monoprice 5.1.2 Speakers, WMC HTPC, TiVo Bolt, X1
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No surprise to me at all.
 

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I would doubt it's a TI DLP superiority issue. If that were true Intel would have dropped out of a number of markets that TIs in (and Intel has been trying to get in) over the last 5-10yrs. Things such as the processors in cell phones to cable modem and DSL chipsets.


Intel wants to get in markets that have a high probability of high growth and return. All of which are areas that they're struggling to compete in outside of the uP and CPU market which they've had a serious advantage in but which is declining.


I'd say they're checking out specifically because there is not likely to be a point in the future where LCoS has a decided advantage over any of the micro-display RPTV technologies. Without this they don't have much of a chance to hold the prices high enough to make the profits required to pay for the R&D costs in the near term. In the long term it will become more of a commodity (as you reach a point in which the image quality from the microdisplay device is sufficient to satisfy the general public.)


With uP, CPUs, DSPs you're always wanting to get faster items to do things which were not realistically possible in real time as what was done in the past. Microdisplay devices will reach their affective useful limits in the not too distant future. Sure you'll probably see standards change in the distant future to go even higher resolution today, but the microdisplay capabilities will have significantly exceeded that by then.


CCourtney
 

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I heard this on the radio this morning... After the story they played the Intel jingle, but the last note made a "sproing" sound like a string just broke on the piano. Made me laugh out loud.
 
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