Not in race for HP's PC business: Intel

Ruling out any move to become the rival of its own customers, the world's largest chip-maker Intel on Wednesday said it is not interested in acquiring technology giant HP's PC business.

At the same time, it also dismissed speculation about a growing divide between Intel and its long-term partner Microsoft, the world's largest computing software company.

The speculation was fuelled after Intel announced a partnership with Google for its foray into the smartphone business and Microsoft unveiled its new operating system, Windows 8, on a unit powered by a processor made by Intel's rival chip-maker, ARM Holding.

Speaking to the media at the Intel Developer Forum (IDF) 2011 here, Intel President and CEO Paul Otellini said he was confident that Intel chips were the best to run Microsoft's platform and he did not see any impact on business due to the growing collaboration between Microsoft and ARM.

Asked whether the company has plans to buy HP's PC business, he curtly replied that Intel did not want to compete with its own customers and it was happy being a chip-maker.

"No, thanks," was his reply to a query about whether Intel wanted to buy HP's PC business. HP, the world's largest PC-maker, last month made a surprise announcement that it was evaluating strategic alternatives for separating its personal computer business into a separate company through a spin-off

or any other transaction.

With annual revenues of USD 126 billion, HP is also in the business of making servers and printers and providing a host of other computing software solutions and services.

The company ships about 48 million PCs annually and its rivals in this business include Dell and Lenovo, which had in the past acquired US-based technology giant IBM's PC business.

Ever since HP's announcement on August 18, there have been persistent rumours about potential suitors for its PC business. Otellini further said that he did not foresee any major changes in the industry dynamics if HP goes for a spin-off of its PC business.

"As far as we being a candidate, no thanks. We like where we are in the ecosystem. We are a silicon-maker. As for competing with our customers, I don't see us going there," he said.

Asked about the growing closeness between Microsoft and Intel rival ARM, Otellini said: "From my perspective, nothing has changed. We still have the best chip to run the Microsoft platform and the best chip wins."

Intel has traditionally been a leading player in making chips for PCs, but it has also started expanding its focus into new market segments like smartphones and tablet PCs.

Announcing a partnership with Google, it announced today that smartphones and tablets based on Intel-powered Android operating systems should hit the market by the first half of 2012.