The chip maker has been pushing internet-enabled TVs for the past few years, teaming up with Google last year.
Smart TVs haven't taken off however, with Logitech losing millions on the Google TV set-top box - which uses Intel's Atom CE4100 system-on-a-chip.
Intel will keep producing those chips for set-top boxes, but will move research and development resources from its Digital Home Group to focus on tablets and Ultrabooks.
“This is a business decision where we’re taking those resources and applying them to corporate priorities,” said spokeswoman Claudine Mangano, according to Bloomberg.
Intel has struggled with Atom, failing to make much of a mark in the tablet and smartphone market.
We've yet to hear back from Intel following a request for more information about the Digital Home Group changes.
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