Samsung Said to Be Considering Google TV Products, Excluding Intel Chips

Samsung Electronics Co., the largest television maker, may use Google TV software in home- entertainment devices based on its own chips, rather than those from Intel Corp., a person with knowledge of the plans said.

Samsung had previously considered using the Google Inc. software and balked after Google required use of Intel’s Atom chips, said the person, who declined to be identified because Samsung’s plans haven’t been made public. Google lifted the restriction.

Support from Samsung would boost Google’s attempts to build on its dominance of Internet search and gain a foothold on big screens in people’s homes, another possible source of ad revenue. By using its own chips, Samsung delivers a setback to Intel’s effort to land its processors in home electronics and lessen its dependence on sales of personal computers.

James Chung, a spokesman for Suwon, South Korea-based Samsung, declined to comment, as did Intel’s Kiesha Cochrane and Chris Dale, a spokesman for Google, based in Mountain View, California.

Google TV software lets users search online video and other content on their TV screens. Until now, the software has been used only in TVs and Blu-ray players from Sony Corp. and in a TV set-top box from Logitech International SA, all using Intel’s Atom chip.

Samsung, the world’s second-largest chipmaker, has sold televisions, Blu-ray players and other home-entertainment devices built around its own software for connecting to the Internet or services such as Netflix Inc.’s video streaming.

Google’s TV project has suffered other setbacks. The online-search provider has clashed with TV networks over allowing their online content on the system.

Google slipped $2.50 to $608.82 at 4 p.m. New York time in Nasdaq Stock Market trading yesterday. The shares have gained 2.5 percent this year. Intel, based in Santa Clara, California, gained 14 cents to $21.29, and has increased 1.2 percent this year.

Samsung shares rose 0.2 percent to 931,000 won as of 9:03 a.m. in Seoul today. The benchmark Kospi stock index gained 0.3 percent.

To contact the reporters on this story: Ian King in San Francisco at ianking@bloomberg.net; Douglas MacMillan in San Francisco at dmacmillan3@bloomberg.net;

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net;

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