Motorola has launched a new Global Positioning System (GPS) chip which it claims is the first satellite sensor small and cheap enough for practical use in devices such as wrist watches.

The company said that the new technology, called Instant GPS, could lead to a whole range of products such as cameras that can imprint location details on photos, handheld computers with maps and real-time navigation, and mobile phones with location sensing applications.

Developed with IBM, Instant GPS consists of a single chip, compared to alternatives that use two or three or require extensive overheads added to the host microprocessor.

Motorola said that, as a result, it is smaller, consumes less power and is much easier to integrate into portable devices.

The interface between the Instant GPS chip and the host processor is kept simple to allow product developers to separate the microprocessor and GPS designs, allowing a faster time to market.

IBM will manufacture the chips for Motorola using its Silicon Geranium process and samples are available immediately for original equipment manufacturers of portable electronic devices.

Tim McCarthy, director of positioning systems for Motorola Telematics, said: "Location awareness is a fundamental human need.

"Knowing your precise location at any instant allows your device to offer a whole range of new applications that will lead to an explosion in growth for location-based services.

"Portable electronic product designers can now add location awareness as easily as they can add a real-time clock."