Intel has announced a new line of tiny chips called Quark that are designed for the M2M and wearable device markets but could also have more futuristic applications such as smart bandages or disposable sensors designed to be swallowed or injected.

The company described Quark as the smallest chipset they have ever built.

The initial focus for the new, lower power chip will be the industrial, energy and transportation sectors. Another potential market is wearable products such as smart watches.

Chief executive Brian Krzanich (pictured) showed off a bracelet as an example of a concept that is under development. He said Intel is pursuing opportunities with partners in this area.

Further down the line might be a sensor that is attached to a patient’s skin to monitor vital signs. Or it could be embedded in medicine swallowed by the patient. Data could be relayed from the sensor to a device worn on the patient’s skin which in turn relays it via a smartphone over the mobile network to health professionals.

Pricing details were not revealed for Quark. In terms of release schedule, the company said it will sample form-factor reference boards based on the first product during Q4 2013.

It was one of a number of announcements at Intel’s annual developer event in San Francisco.

The company also showed off chips that it says will make it a contender in the smartphone and tablet markets. The announcements included its first processor for an Android tablet.

Much of its focus was on the Bay Trail line of chips that Intel hopes will make it more competitive in the smartphone and tablet market, sectors it has previously struggled in.