Intel Unveils Custom G3 Chips for Handheld Gaming PCs

Intel has formally announced the development of custom processors specifically designed for handheld gaming PCs. During the CES 2026 Keynote, the company revealed the Intel Core G3 processors, built on the proprietary 18A Foundry process node. These chips are engineered to optimize performance for portable gaming devices, marking a significant shift in Intel's strategy for the gaming market.

The centerpiece of this announcement is the Arc B390 integrated GPU. This new graphics architecture delivers a substantial performance boost, boasting up to 77% faster gaming speeds than the previous Lunar Lake generation. Intel CEO Lip Bu Tan characterized the launch by stating, 'We’ve overdelivered,' signaling strong confidence in the new hardware's capabilities.

To support this hardware launch, Intel is establishing a comprehensive 'handheld ecosystem.' Dan Rogers, Vice President and General Manager of PC Products, detailed partnerships with industry giants including MSI, Acer, Microsoft, CPD, Foxconn, and Pegatron. This collaborative effort aims to flood the market with Intel-based handhelds, providing stiff competition to existing AMD-powered devices.

The Arc B390 integrated GPU represents a massive leap forward in graphics performance for integrated silicon. Previously identified as the 12 Xe-core variant, this chip significantly outpaces its predecessor, the Arc 140V found in Lunar Lake. Intel claims the new iGPU provides up to 77% faster gaming performance, a figure that reshapes expectations for handheld gaming hardware.

When compared to competitors, the Arc B390 shows impressive metrics. Intel reports that the chip averages 73% better performance than the AMD Ryzen AI 9 HX 370 and its RDNA 3.5 iGPU. Furthermore, the chip even outperforms discrete mobile graphics, beating the NVIDIA RTX 4050 mobile GPU by approximately 10%.

The performance gains are supported by new software technologies. Intel is introducing XeSS 3, which includes 4x multi-frame generation capabilities. Combined with the raw power of the Arc B390, this software suite suggests that handheld devices powered by Panther Lake could effectively replace older desktop gaming setups.

Perhaps the most significant aspect of the announcement is the creation of the Intel Core G3 branding. Unlike previous generations where handhelds often utilized repurposed laptop chips, Intel is now creating hardware-specific variants of the Panther Lake CPU die. This allows the company to slice the silicon specifically for the thermal and power constraints of handheld devices.

By customizing the die, Intel can prioritize GPU performance to match the specific needs of portable gaming. Sources close to the matter indicate that this specialization could lead to even better performance than the current Arc B390 expectations suggest. This move confirms Intel's intent to lean heavily into the handheld gaming PC segment, a market they have previously hinted at entering.

The combination of custom silicon and a dedicated ecosystem represents a clear strategic pivot. Instead of adapting existing chips, Intel is engineering solutions from the ground up for this form factor. This approach ensures that MSI and Acer devices will have hardware optimized specifically for handheld use cases.

Intel's aggressive move into handhelds sets the stage for a fierce battle with AMD. Historically, Intel has struggled to maintain a foothold in this specific market. The original MSI Claw was widely considered a commercial failure, and while the MSI Claw 8 AI+ and Claw 7 AI+ showed improvement, they remained the only major Intel-based handhelds in the US market.

AMD currently holds the lead in this segment, largely due to the success of the Asus ROG Xbox Ally X featuring the Ryzen Z2 Extreme. However, the introduction of custom Intel Core G3 processors could shift the momentum back in Intel's favor. With MSI and Acer committed to the new platform, consumers will see a wider variety of high-performance Intel handhelds.

Ultimately, this competition benefits the consumer. As Intel and AMD push each other to maximize performance per watt and graphical fidelity in small form factors, gamers will receive better hardware at more competitive price points. The race to dominate the handheld PC market is officially on.