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SAN FRANCISCO (Reuters) - Intel Corp. (INTC.O: Quote, Profile, Research) on Thursday said it has scrapped plans to enter the digital television chip business, marking a retreat from a major component of its consumer electronics initiative.

The cancellation, which follows a string of missteps by the world's largest chip maker, eliminates a major competitive threat faced by Texas Instruments Inc. (TXN.N: Quote, Profile, Research) , whose own chips for rear-projection televisions have become a successful enterprise.

"What we've decided is that for the investment that's required and the returns we would get, and the timeline to get to those returns, that it doesn't make sense for us to pursue this particular technology," Intel spokesman Bill Calder said.

Earlier this month, Philips Electronics (PHG.AS: Quote, Profile, Research) (PHG.N: Quote, Profile, Research) also announced it would halt development and production of rear-projection televisions based on the technology. Philips said its share of the market was too small.

Nine months ago, Intel announced plans for an aggressive push beyond the personal computer and into consumer electronics with new chips for big-screen, high-definition televisions.

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Source: Reuters