Chip giant Intel is betting that that ultra mobile internet devices will be the “next big thing in computing,” with the company making a significant push into the mobile space in 2008.

Speaking at the Consumer Electronics Show, taking place in Las Vegas this week, Intel president and CEO, Paul Otellini, said that the world is “going ultra mobile, with smaller, more powerful, connected mobile devices delivering a no-compromise web experience in an ultra low power device small enough to fit in your pocket or purse.”

Just last week, Intel shook up Nicholas Negroponte’s One Laptop Per Child (OLPC) initiative by withdrawing support and funding for the project after a major fall out between the two companies. The OLPC alleges that Intel had been using its position on the OLPC board to undermine the distribution of the XO device to kids, in favour of selling its own Classmate low cost laptop.

After a big build up in 2007, the chip maker said it plans to ship its first low power processor and chipset platform designed for mobile internet devices in the first half of this year. Codenamed “Menlow,” the single chip processor design claims to come in a package that is five times smaller and consumes ten times less power than ultra low voltage mobile processors introduced in 2006.

Featured on the Menlow-based designs are optional standardised capabilities such as wifi, 3G and WiMAX to enable more of an always-connected experience.

But WiMAX is high up on the company’s agenda. During his presentation on Monday, Otellini touted the advantages of WiMAX compared to other wireless broadband technologies in delivering a global internet network. “While other wireless technologies are still in development, WiMAX is ready to be deployed today,” he said.

Otellini predicts that nearly 150 million people will be connected via WiMAX by the end of this year.