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Intel signs Internet memorandum with Baidu.com

Intel Corp, the world's biggest chipmaker, signed a memorandum of understanding with Baidu.com Inc (百度) to expand Internet search services in China.

The two companies will develop chips used in mobile phones, laptop computers, and desktop computers, Beijing-based Baidu.com said in an e-mailed statement yesterday.

Baidu.com, China's most used Internet search site, is looking for ways to offer its services to users outside of the home and office. The deployment of high-speed mobile-phone networks in China, widely expected to take place this year, would allow more people to access online content via cell phones.

"This agreement is all about putting search in more places, not just in the office," Cynthia He, a Baidu.com spokeswoman, said by telephone.

Intel, based in Santa Clara, California, will develop a chip with Baidu that has search services embedded on it, she said.

Baidu.com had a 56.6 percent share of the search market in China last year, according to Shanghai-based research company IResearch Inc. That compares with Google's 32.8 percent and Yahoo's less than 5 percent share.

China, the world's second-largest Internet market, had 111 million users at the end of last year, according to government data.
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