Chip maker Intel announced a plan yesterday to spend $200 million (€222 million) over two years to build an Internet media business that will allow customers to transmit everything from movies to conferences to online training via the Internet.

The broadcasting plan is the latest effort by Intel to broaden sales beyond the microprocessors that account for 80 per cent of its revenue. It builds on Intel's initiative announced last year to provide Web-hosting services to companies. "Intel got rich on microprocessors. They need to try to get into other businesses that are growing rapidly," Mr David Wu, an analyst at ABM Amro, said.

Intel stock, which fell $10.88 on Wednesday after the company said a chip defect made thousands of computers vulnerable to crashes, was up $6.81 at $112.88 in active early afternoon trading on Nasdaq and finished further ahead on $115.56.