Intel has ruled over the PC processor market for the past two decades, but when it comes to mobile technology, the U.S. based company is getting crushed by Qualcomm, Nvidia and MediaTek.

In order to lower losses on the mobile side and potentially bring more minds on the mobile issue, Intel has announced it will merge its PC and mobile divisions.

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The new unit will work on all of Intel's chips, apart from wearable chips and other niche market chips. It will be called "client computing group" and will be headed by senior vice president of the PC division Kirk Skaugen.

Intel CEO Brian Krzanich said the move to merge the divisions will create a more streamlined approach to building chips, which could result in one chip for both mobile and PC in the near future.

PC chips are getting smaller every year, while GPUs and other parts continue to get larger. Intel might be able to squeeze one of its high-end PC chips into a mobile one day, although these normally cost over $300 each, which isn't cost effective for a mobile device.

Intel Atom line has been the main seller on the mobile side. Even with the slight upgrades in speed and battery dependence compared to its rivals, Intel has not been able to surpass Qualcomm, the number one supplier of processors in the mobile industry.

Even Nvidia and MediaTek are getting more attention, especially in Asia where Qualcomm is not as big of a supplier. Intel also lacks Apple's backing in the mobile industry, whereas on Mac all computers have Intel built in.

Intel was late to the party when it came to mobile and with the mobile division costing the company $1 billion, it is about time to merge it. The PC division, by comparison, made $4.12 billion profit, showing the PC is not dead.

To make sure another mobile incident does not happen, Intel has been heavily investing in different technologies and products. Quark chips have been issued to manufacturers of wearables and Intel is making even smaller chips for fitness bands.

TagsIntel, mobile chips, processors, PC chips