World's largest chip-manufacturer Intel’s $7.7 billion deal to acquire the security firm McAfee will allow it to build the latter’s anti-virus technology directly into its computer chips.

The acquisition will also allow Intel to expand beyond the shaking PC market. Intel and McAfee together will be able to embed security into much popular tablets and smartphones. Conventionally, anti-virus software has been installed on desktops and laptops.

The deal is expected to bring specifically improved chips that could help encrypt data faster to defend e-mail privacy and help confirm the identity of users prior to they boot up mobile devices or tap into corporate networks.

McAfee CEO David DeWalt said that the technology could help consumers by allowing them to find and remotely turn off missing or stolen cellphones.

Obviously, the duo will not overlook the PC market that accounts for most of their revenue. However, products produced by the partnership are expected to better protect PCs and other portable devices with the aid of new chips, which will enhance security functions now provided by software.

Speaking on the deal, Richard Williams from Cross Research said, "The emergence of malware on wireless devices makes the McAfee deal fit well with Intel's strategy."

But, the companies confirmed that the new jointly-developed products will not appear until next year.

Thursday’s announcement pushed McAfee shares pushed up by 57 per cent to $47.01, while shares in Intel slipped 3.5 per cent to $18.90.