Intel Corp new Sandy Bridge microchips will yield about a third of its revenue in 2011 and help trigger more than $125 billion in sales for the struggling personal computer industry, Chief Executive Paul Otellini said on Wednesday.

The new chips, which were introduced this week, combine graphics capabilities on the chips that are the brains behind PCs. Intel says the microprocessors are faster and include piracy protection that will make it safer for Hollywood studios to use the Internet to show films and television shows.

Intel, by far the largest microchip company in the world, still lags in the red-hot markets for smartphones and tablets. Smartphone and tablet manufacturers have mostly rejected Intel offerings in favor of power-sipping chips based on ARM Holdings.

Intel is betting that other new chips due out early next year will help it carve out a piece of the mobile market.

Its share of the world semiconductor market slipped to 13.8 percent in 2010 from 14.2 percent in 2009, according to market research firm Gartner.

Intel's shares were down 1 percent at $20.95 in Wednesday's Nasdaq trading.

(Reporting by Gabriel Madway and Noel Randewich; Editing by Derek Caney)

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