Intel’s Medfield system-on-a-chip isn’t the company’s first venture into smartphone territory. Last year, at CES 2011, Intel and LG partnered up to debut Intel’s Moorestown chip. Unfortunately, nothing ever came of the reference device. Due to a “lack of marketability,” the handset never saw retail. This year, things could be different.

Intel’s Medfield has been rumored to appear at this upcoming CES, but in exactly whose hardware has remained a mystery until now – LG will be the one to put a Medfield device on display. According to the Korea Times, officials from both companies have confirmed the news. Intel Korea chief Lee Hee-sung has gone on the record saying, “Intel’s chief executive Paul Otellini will release Intel’s first Android smartphone using our own platform at the CES.”

While LG may be the one to showcase a reference model, some LG executives don’t think LG will actually be selling the device. A high-ranking executive at LG, who wished to remain anonymous, said, “personally, I doubt that LG Electronics will release phones running on Android software based on any Intel platform. It’s quite possible for LG to push Intel’s reference mobiles but with huge subsidies from Intel for promotion.”

Essentially, LG will be payed in the form of cooperative advertising to produce the Medfield device.

Could 2012 finally be the year Intel makes a breakthrough in the mobile industry? At this point, it has to be. Rival chip manufacturers have such a huge head start, Intel can’t afford any more setbacks. Intel’s appearance at CES could make or break the company’s chances. They hope to release their first Android device by March.

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