A lack of demand for Smart TV’s and falling demand for set top boxes has been blamed for the decision by Intel, to stop the development of processors for TV’s.

A lack of demand for Smart TV’s and falling demand for set top boxes has been blamed for the decision by Intel, to stop the development of processors for TV’s.

The decision to quit the TV market in favour of developing processors for tablets is a blow to Google who partnered with Intel in the development of the Google TV platform.

Last night Intel announced that they will terminate the work being done by their Digital Home Group, and move the engineers onto tablet, smartphone and Ultrabook development.

The move is a further blow to D Link, Logitech and Sony who partnered with Google to develop Google TV products which when launched failed to sell due to software and hardware problems.

Intel’s Atom CE4100 chip currently powers D-Link’s Boxee Box and Logitech’s Revue digital media players.

Analysts are tipping that ARM manufacturers will continue their TV development work with some manufacturers set to make announcements at CES 2012.

SmartHouse has been told that Samsung will make an announcement at CES that they have developed a processor for a new range of Smart TV’s. 

“This is a business decision where we’re taking those resources and applying them to corporate priorities,” Claudine Mangano, an Intel official, told Bloomberg.

Intel said that CE4100 will continue to be sold and supported by Intel.