The manufacturer of chips for computer graphics cards, Nvidia Corp., is developing a microprocessor for tablet chips that will be able to compete directly with the products of Intel Corp as stated by two sources, familiar with the matter.

Computer companies can use chips those are being designed by a team of engineers in Nvdia instead of Intel. The sources giving these facts wanted to stay anonymous as the project hasn't been announced in public.

Nvidia tried to make laptop processors earlier which didn't work out for them and then only they shifted to create a tablet chip. Actually the processors they were working on could not have competed with Intel's Atom chips as they are cheaper.

Nvidia by creating these tablet devices can tap the growing market for chips soared by the success of iPad of Apple Inc.

Apart from that Nvidia would be able to compete with its two arch rivals Advanced Micro Devices Inc. and Intel, microprocessor makers who have invaded the ground of Nvidia's graphic card chips and encroached a portion of its business.

Jim Gregor, an analyst working in InStat, said that Nividia is in need of a core processing unit which serves as the brain of a computer, for future competition.

According to him Nvidia has shortage of time as their business model is pressurized.

The current project of Nvidia is relying on a technology founded by Transmeta Corp. The technology takes help of software to reproduce the way in which Intel chips function.

More than eighty percent of computers all over the world use Intel chips. Intel owns the technology called X86 instruction set which the company is using since nineteen seventy in its first CPUs. Intel had given the license of their design to Advance Micro Devices but not to Nvidia.