Intel enlists Tencent for move into tablet market

Intel (INTC.NASDAQ) and Tencent (0700.HK) will open a joint research center to develop tablet computers and mobile devices for the Chinese market, part of Intel’s bid to close the gap with chipmaker ARM Holdings PLC (ARM.LON), which supplies both the Apple (AAPL.NASDAQ) iPad and devices using Google’s (GOOG.NASDAQ) Android system, the Wall Street Journal reported. Under the partnership, the California-based Intel will focus on developing hardware and operating systems, while Tencent will focus on services, user experience and products for joint projects. The companies will initially employ 60 engineers at the research center, with an aim to increase this number to 200 as it expands research from tablets and gaming to online services that integrate multiple devices, including handsets, PCs, TVs and vehicles. Intel announced a new set of chips for tablet computers on Monday, its first move into the fast-growing tablet market. Chinese telecom equipment maker ZTE Corporation (000063.SHE, 0763.HK) also announced earlier this week that it had partnered with Intel on research and development.