Microsoft will reportedly announces a version of its Windows computer operating system that runs on ARM chips at CES 2010. The new product will debut at the Consumer Electronics Show in January, according to a Bloomberg report. The software would be tailored for battery-powered devices, such as tablet computers and other handhelds, the people said.

ARM chips made by Qualcomm, Texas Instruments and Samsung are used in most smartphones, as well as Apple?s iPad. Microsoft's new OS could give the company another way to attack the market for tablets and phones.

Bloomberg's sources also claim that the new operating system would be able to work on Intel and AMD processors.

Microsoft already has been rumored to show off several tablets or 'Slates' , as the company calls them, at the Consumer Electronics Show 2011 in Las Vagas starting January 6. Steve Ballmer, CEO of Microsoft, might be showing a sneak preview to Windows 8 on tablets and other mobile devices as well.

In July this year, Microsoft had signed an agreement to license the ARM microarchitecture and following that Microsoft unveiled Windows Phone 7 devices that support ARMv7 chips in October.

So far, Microsoft claims of having sold 1.5 Million Windows Phone 7 devices already to mobile operators and retailers.

Intel is trying to make its own forays into tablets and smartphones with its low-power CPUs, squaring off against ARM?s technology.