The company also kicked off a new program, Windows Embedded Strategic Silicon Alliance. Chipmakers taking part include the likes of ARM, Agere Systems, Cirrus Logic, Hitachi, Intel, MIPS Technologies, NEC, and Toshiba. Alliance participants will have access to the operating system’s source code and will work with Microsoft to optimize the operating system for their chips. The optimizations for all the chips made by those in the alliance will be incorporated into the final version of Talisker.

Kim Akers, director of marketing for Microsoft’s embedded and appliance group, told CNET that

Microsoft is loosing the reins by accepting more input from OEMs, but is keeping control over what happens to its source code.

While Microsoft has struggled to make significant inroads into the non-PC market, Microsoft is betting that the alliance will spur the development of chips to power the next generation of embedded devices, from factory equipment to cellphones.