Intel, Microsoft Collaborate on PCs for Autos

Intel Corp. and Microsoft Corp. said they are working together to build voice-activated computers for automobiles, as both companies try to move into the market for non-PC computing devices. The new machines, based on Intel microprocessors and Microsoft’s Windows CE operating system, are expected to provide voice-controlled navigation, mobile-phone service and e-mail, as well as stereo sound and other entertainment. Microsoft is pushing to make Windows CE the standard operating system in electronic devices such as car computers, hand-held computers and smaller palm-sized PCs. Both companies have been pursuing the car computing market. They said they will coordinate their efforts, using Microsoft’s Auto PC, a variant of Windows CE, as the software that will run the system. Auto PCs is expected to hit the market in the first half of next year, Microsoft said. Ford Motor Co., General Motors Corp. and Clarion Corp. are developing machines that use Windows CE. In Nasdaq trading, Santa Clara-based Intel shares fell $1.25 to close at $72.63, and Microsoft shares fell $2.69 to $87.25, in a broad technology sell-off.