A man walks past an Intel wall at the 2009 Computex trade show in Taipei June 3, 2009

Intel Corp plans to cancell first advanced graphics chip based on a novel design dubbed Larrabee after concluding that delays in the project would make it uncompetitive, according to media report Monday.

The move is a setback to Intel's plans to compete with Nvidia Corp and Advanced Micro Devices Inc, now the dominant players in the graphics market, in part because the technology threatened to open a new front in Intel's competition with the two companies that lead the market for high-performance graphics chips, often sold in cards that plug into personal computers.

Intel decided to scrap plans for the graphics card because Larrabee's silicon and software development are behind where it had hoped they would be at this point in the project, Intel spokesman Nick Knupffer said.

Intel now plans its first Larrabee product to be used as a software development platform for both graphic and high performance computing in 2010, Knupffer said.

The company is planning to launch the graphics card in the 2009-2010 timeframe, he said.

Source: Chinaview