Intel Corp., the world's largest computer chip maker, said Monday that it formed a new business group focused on wireless communications, according to a report from the company.

The Santa Clara, California-based company said its Computing and Enhancement Group would become the Wireless Communications and Computing Group, to focus on cellular and wireless communications.

"We think it's a major play for us," said Craig Barrett, Intel's president and chief executive. "It's potentially a large market."

The move, according to industry sources, is the company's latest as it expands beyond its core PC microprocessor business on higher growth areas such as communications and networking.

In the past year, Intel has made a flurry of acquisitions as it seeks to become the building block supplier of the Internet economy.

In October, Intel announced a 1.6 billion-dollar deal to buy DSP Communications Inc., a supplier of chipsets, chip designs and software for digital cellular products. With its new structure, DSP will report as a wholly owned subsidiary within the Cellular Communications division of the new Wireless Communications and Computing Group.

Mark Edelstone, an analyst at Morgan Stanely Dean Witter, said the market for chips for cellular phones and wireless devices is rapidly growing to almost 10 percent of the approximately 144 billion dollar semiconductor industry.

"It's growing three times faster than the PC market," Edelstone said. "It makes a lot of sense. It just highlights the focus that companies are placing and should place on wireless."

Intel's flash memory business will also become part of the new wireless group. Ron Smith, an Intel vice president, was previously the general manager of the Computing Enhancement Group and will become general manager of the Wireless Communications and Computing Group. (Xinhua)