The demo consisted of a dashboard containing an Atom processor and wireless radios to communicate with devices, such as MP3 players, cell phones, or laptops, which might come into the car with passengers. In addition to talking to objects within the car, the built-in PC can talk to objects outside the vehicle, including other cars and even traffic signals, thanks to a clever approach developed by the researchers. Nguyen explains that it would be relatively inexpensive to add photodetectors to the headlights of cars so that they could "see" the brake lights of cars in front of them as well as LED-based traffic signals.

In Thursday's demonstration, Nguyen showed that when a traffic light or brake light fitted with a modulator--a device that flickers light to send a signal--sends a message, a photodetector in a car's headlight can pick up the signal and act accordingly.

So what does that mean? If you're quickly approaching an intersection where the light is red, or approaching a car with its brake lights on, a voice from the dashboard would warn you to slow down. And if you don't stop, says Nguyen, the car itself might automatically apply the brakes. He adds that other Intel research projects are investigating how to implement these sorts of technologies while considering human behavior. Not everyone will have the same level of tolerance for an automated (and omnipotent) backseat driver, he says.

At the Intel Developer Forum (IDF) in Beijing on Wednesday, Intel outlined a plan to put its low-power chip, called Atom, in ever smaller gadgets. Atom, released a year ago, initially targeted netbooks and mobile-Internet devices (MIDs) because of its minimal power requirements. But at IDF, Intel released plans for two new Atom chips and gave a demonstration of Moorestown, a chip package built around Atom that could start to show up in smart phones in 2010.

One of the new Atom processors, dubbed Z550, will run as fast as a two-gigahertz chip but use less than three watts of power, the company claims. Another Atom chip, the Z515, can handle speeds of 1.2 gigahertz but will use Intel's "Burst Performance Technology," in which the chip will experience surges of processing power based on the tasks that it needs to perform.

Earlier this year, Intel and LG Electronics announced that they would offer the first smart phone that uses Moorestown in 2010. This isn't the first time that Intel has tried to break into the mobile market. But until now, ARM, the leading mobile-chip company, has maintained its dominance.

One advantage for ARM has been that it licenses its designs to chip foundries. This enables significant flexibility in the types of chips that are produced, so that they can be optimized for a given handset manufacturer. Intel, however, has always held its designs close, an approach that has made it more challenging to optimize Atom for so many different products.

Intel's position has recently changed, however. In March, it announced a partnership with Taiwan Semiconductor Manufacturing under which Intel will license its technology to the foundry--a first for the chip giant. The partnership combines the world's biggest foundry and the world's largest semiconductor company. Both companies hope that it can extend their reach into mobile phones and MIDs.

In hard times, it's fair to say that some consumers cut back on electronic gadgets. And in response, a number of traditionally healthy companies, nervous about falling profits, have announced drastic moves. Microsoft, for one, started its largest mass layoff ever, cutting 5,000 jobs over the next 18 months. The company's second quarter results showed an 11 percent drop in profits--something that can be explained, in part, by a sharp drop in sales of its Windows operating system.

But Microsoft isn't the only one. Intel, maker of the chips inside those now dispensable gadgets, suffered its worst quarter in 25 years, prompting the company to lay off at least 5,000 employees. Sony, maker of televisions, cameras, and the PlayStation 3 video-game console, expects to post an operating loss of $3 billion. LG Electronics, manufacturer of cell phones, reported a loss of $500 million. Samsung Electronics is expected to post its first quarterly loss ever.

And even the sale of used and overstocked goods, which can appeal to consumers in a bad economy, isn't helping matters at eBay. The auction site announced a 31 percent drop in profits.