Other challenges are memory and batteries.

A chip in a wearable device wouldn't have enough memory to record what you do all day. That means the device would need a high-capacity battery. It would also have to feed any recorded information to a flash memory device that you keep in your pocket, for example.

Last summer, made a splash with its computerized eyeglasses, at its I/O developers conference. The -powered eyeglasses are equipped with a processor, memory, camera, GPS sensors and a display screen.

According to industry analysts, in the not-so-distant future, computers will be worn, whether incorporated into glasses, or in a piece of jewelry, such as a bracelet or pendant.

Zeus Kerravala, an analyst with ZK Research, said trying to get in on the wearable computer market before it takes off is a smart move for Intel.