National Semiconductor readies chip that takes over most functions of PC.

National Semiconductor Corp., taking a leap forward in the race to shrink the size and cost of the personal computer, Thursday will announce that it has put most of the functions of a PC on a single chip. The technical feat of combining 43 different chips onto one sliver of silicon is designed to appeal to consumers who are tired of overcrowded desktops and to accelerate the development of fully functional handheld computers. But the development of the Geode SC1400, as it is called, may be a pyrrhic victory for National Semiconductor_s chief executive officer, Brian Halla, and his chief lieutenant on the project, Israeli engineer Sidi Yomtov. The chip comes too late to rescue National Semiconductor, based in Santa Clara, Calif., from the price-cutting war it waged and lost to Intel Corp. In May, Mr. Halla admitted defeat and announced that his company would sell its Cyrix PC microprocessor unit. But it may come just in time for National Semi to save itself, much like Intel did in the 1980s, by making a strategic exit from a losing market in favor of a hot one. "We_re taking a page from [Intel_s] book with this chip," says Mr. Halla, referring to Intel_s departure from the memory-chip market.