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Nvidia Partnering With Lenovo on Windows RT Device

Nvidia Corp. (NVDA) will supply chips to Lenovo Group Ltd. (LNVGY, 0992.HK) on a device running Microsoft Corp.'s (MSFT) Windows RT operating system, people familiar with the matter said, giving Nvidia another partner in its push into mobile devices. The newest version of Windows, to be released in October, will be the first to work with chips based on the ARM Holdings PLC (ARMH, ARM.LN) architecture, not just those from traditional partners Intel Corp. (INTC) and Advanced Micro Devices Inc. (AMD). Microsoft and system makers are turning to makers of ARM-based chips--used in most smartphones and tablets--to make inroads against Apple Inc.'s (AAPL) iPad, which continues to dominate the market. Nvidia is one of the three initial ARM licensees working on Windows devices. So far, Asustek Computer Inc. (ASUUY, 2357.TW) and Microsoft have announced tablets using Nvidia's Tegra mobile processor. People familiar with the matter said Chinese computer giant Lenovo, which recently became the world's second biggest PC maker by shipments, is also working on a Windows RT device with Nvidia. One of these people said the companies are developing a convertible notebook, with a keyboard that flips around to turn the product into a tablet. Lenovo unveiled a similar device earlier this year, dubbed the IdeaPad Yoga, that will run Windows 8 with an Intel chip. Lenovo has been working to introduce other tablets to address the fast-growing market. Late Wednesday, the company announced a business user-centric tablet during an event in New York. The device, dubbed the ThinkPad Tablet 2, also runs Windows 8 and uses an Intel chip. Dilip Bhatia, general manager of Lenovo's ThinkPad business, said in an interview at the event that along with the Intel-based tablet, Lenovo also plans to introduce a Windows RT device when Windows hits the market. He declined to provide details about the product. Nvidia, meanwhile, earlier Thursday reported record revenue for its mobile chip, dubbed Tegra. During the company's earnings call with analysts, Chief Executive Jen-Hsun Huang noted that Nvidia has seen particular traction with tablets and that it's working with three partners for Windows RT devices. He mentioned Asus and Microsoft but didn't provide details about the third partner. "We're making really good progress in making our way into the fastest-growing segment of the computer industry," he said. Write to Shara Tibken at shara.tibken@dowjones.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires

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