Are Nokia and Intel Working on a Chip Together?S

Both companies are dropping clues that Nokia and Intel are working on a new mobile chip—a move that could solve serious problems for both. Intel and Nokia's love affair, it seems, is bigger than Meego.

The theory congealed after Monday's announcement of Meego, an awkwardly named laboratory child of the Nokia's Maemo mobile OS and Intel's Moblin netbook/tablet platform, and runs thusly:

1. Intel and Nokia are now working together in some capacity, obviously
2. Nokia has been reticent to voice solidarity with Qualcomm as the chip provider for certain forthcoming hardware
3. SemiAccurate actually reported that Nokia and Intel are working on an Atom-based SoC called Penwell, which for various technical reasons (including extra room for extra components created by the 32nm manufacturing process) looks like its shaping up to be a system-on-a-chip, in the style of Qualcomm's Snapdragon or Apple's A4.
4. This would make sense for both companies, therefore, well, it would make sense for both of these companies.

Nokia's current smartphone lineup hasn't found a foothold in the US, and their netbook business is just learning to walk, so a partnership with Intel could help them develop high-end, unique hardware to power flagship handheld devices and new lines of netbooks, which, unlike last time around, might actually be worth their sky-high price tags. For Intel, well, Nokia is huge—the biggest cellphones manufacturer in the world—so having an in with them can't be a bad thing.

It's worth stressing that while a partnership here makes sense, it's by no means vital: Intel would be fine without Nokia, and Nokia would be fine without Intel. But just think of the things they could do together! They are... mildly exciting, for some people! [Ars Technica]