Intel who made the smart TV chips in the first wave of Google TV devices, have shut down its Digital Home Group to concentrate on mobile devices and tablet pc’s instead. The news comes after reports that Google will be using ARM based chips for version 2 of Google TV.

Intel jumped on the smart TV bandwagon back in 2010, teaming up with Sony and Logitech to help create the first Google TV devices. The system never took off and other manufacturers such as Samsung and Panasonic make or source their own chips. The Intel Atom chip also runs the D-Link Boxee Box as well as the Logitech Revue and Sony Google TV.

A statement from Intel said, “There is a ton of synergy between tablets and TVs (both are mainly content consumption, viewing devices) so we will combine the remaining CE businesses with the tablet organization (headed by Doug Davis). As you can imagine, this was a tough decision – Intel led the creation and launch of the smart TV category and its first products. But, these collective actions will help to ensure that Intel has the best people focused on top business priorities.”

With the closure it looks like competitor ARM will take up the slack that Intel leave. ARM already have a strong presence in the smartphone and tablet markets, and are in prime position to boss the market.

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