Intel Corp has scrapped plans to launch an advanced graphics chip based on its novel Larrabee design, after concluding that delays in the project would make it uncompetitive, a spokesman said on Sunday.

The move is a setback to Intel's plans to compete with Nvidia Corp and Advanced Micro Devices Inc , now the dominant players in the graphics market.

Intel decided to scrap plans for the graphics card because Larrabee's silicon and software development are behind where it had hoped they would be at this point in the project, spokesman Nick Knupffer said.

The company was planning to launch the graphics card in the 2009-2010 timeframe, he said.

Intel now plans its first Larrabee product to be used as a software development platform for both graphic and high performance computing, Knupffer said.

Knupffer added that Intel will reveal more of its graphics plans next year.

Electronics Intel Chip