Energy-sipping Atom chips coupled with graphics technology will be built into sleek "smart phones" and other "mobile Internet devices" (MIDs) that fit in people's pockets, according to the US company.

Atom processing combined with innovation from device manufacturers and software makers "will change the way consumers will come to know and access" the Web," Intel promised.

"Today is a historic day for Intel and the high-tech industry," Intel senior vice president Anand Chandrasekher said in a written release.

"These forthcoming MIDs, and some incredible longer-term plans our customers are sharing with us, will show how small devices can deliver a big Internet experience."

Atom chips with speeds as fast as 1.86 GHz enable quick downloading of Internet pages and playing of rich video and audio files, according to Intel.

Intel's five new chips are described as energy misers, drawing less than three watts of electricity while they work.

The processors should foster "a new class of next-generation" Internet-based portable video players and navigation devices, Intel predicts.

Gadgets embedded with Atom chips will be on the market by August, according to Intel.

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