Lava will ship the Xolo X900 smartphone with Intel's Atom chip code-named Medfield, said a source familiar with the product plans. Intel CEO Paul Otellini on Tuesday also said that the first Intel Inside smartphone would ship later this week.

The smartphone has a 4.03-inch screen and an Intel Z2460 single-core chip running at 1.6Ghz. Intel has said that smartphones with the Z2460 chip can provide battery life of up to eight hours of 3G voice calling, six hours of high-definition video decoding, or five hours of 3G browsing, and standby time of 14 hours.

The Xolo X900 smartphone was originally announced by Lava and Intel at the Mobile World Congress Show in Barcelona toward the end of February. The smartphone comes with an as-yet-unknown version of Android and also has two cameras, high-definition video capabilities and NFC (near-field communication) to share information or make payments quickly at points of sale. The retail price for the smartphone was not immediately available.

Intel has also partnered with Lenovo, Motorola, Lava and Orange on smartphones. Lenovo's K900 smartphone with the Medfield chip is due next month, while Orange may ship an Intel Inside smartphone in June.

Xolo is a big breakthrough for Intel, which for years has fallen flat in efforts to enter the high-volume smartphone market. Intel in 2010 showed an LG smartphone based on the earlier Atom chip code-named Moorestown, but the device never reached customers. Intel primarily makes high-powered chips for PCs and servers, but in recent years it has thrown financial muscle behind developing low-power chips for tablets and smartphones, most of which use ARM processors.