Intel will be developing chips for smartphones from Motorola Mobility and Lenovo, who will be rolling out Intel-powered smartphones.
The Lenovo agreement is an extension to the ongoing partnership between the two companies focused on personal computers.

Intel Architecture Group Vice President Dave Whalen said it is a long-term strategy that will bring both phones and tablets to the US marketplace.

Lenovo would launch a smartphone for the Chinese market using Intel’s newest chip in the second quarter of the year, while Motorola will release its phone in the second half.

Whalen added, "We’re going to work very closely with Motorola and Google and really figure out what kind of things we can do that are unique and different," referring to video and camera technology.

The agreement with the Chinese and US electronic consumer makers, along with the hope that Intel’s "Medfield" chip conserves enough power to compete with smartphones having energy-efficient architecture gives it a strong foothold as it moves into the mobile space.

The chipmaker had previously taken a shot at processors meant for smartphones and tablets that could not live up to expectations, and thus, investors are a bit worried that any recurring setback would leave it badly positioned for the future.

Intel has also recently come up with its plans for Ultrabooks, with the hope of dominating over the PC markets as consumers are being drawn away from iPads, and going for a push with names like Hewlett Packard in this regard.