Intel has launched a new chip called Oak Trail processor which is designed for use in tablet devices.

The chipmaker has updated its Atom range of processors with the Z670 Oak Trail processor, which is smaller and uses less power than other chips in the Atom family.

Intel’s chips are in 80% of laptops and desktop PCs, but the mobile market is dominated by processors from companies such as Qualcomm and Texas Instruments which consume less power than normal processors. Apple designs its own chip for the iPad.

Intel admitted that it is behind competition in the tablet chips market, and hopes that with the new product it can gain more market share in the growing tablet business.

Intel marketing manager for notebooks and tablets Kevin O’Donovan said, "You won’t find a lot of Intel based tablets on the shelves at the moment."

"2011 is about becoming relevant," he said.

General manager Doug Davis said the new chip would deliver "architectural enhancements for longer battery life and greater performance".

Oak Trail can run a number of different tablet operating systems including Windows 7, Android, MeeGo and Google’s upcoming OS.

The first Oak Trail run tablets are expected to hit stores in May.