Intel is planning to develop chips for devices powered by the ARM processors at its foundries and start fabrication of 64-bit ARM processors in 2014.

The chip maker is planning to use processors of rival British chip maker despite it has been in competition with the ARM in x86 processor segment.

The new chips will be developed for Altera system-on-a-chip (SoC), which will use a control processor built by ARM, to manage the data packets on its field-programmable gate array (FPGA).

Altera SoC product marketing senior director Chris Balough was quoted by CNET as saying, "When this chip comes out it will be among the largest chips ever produced on this planet in terms the number of transistors. It should pass 4 billion transistors."

In April 2013, Netronomes announced that Intel would make its flow processor featuring an ARM processor.

With the move, Intel plans to dominate the semiconductor market and the company also expects to attract more customers.

The Alter chip is expected to be available by late 2014 and go into production in 2015.