Intel's Classmate PC appears to gain more popularity, as the government of Venezuela has recently announced that it plans to order more than one million of these low-cost portable computer systems, as part of a broader economic agreement between Venezuela and Portugal. According to said agreement, Portugal will produce the one million units of Classmate PC laptops, which it will then ship to Venezuela, as the government here is planning to improve technical literacy in the country by distributing the one million laptops in public schools.

Earlier this year, Intel signed a contract with the government of Portugal to deliver 500,000 units of the Classmate PC to primary school pupils. The laptops are manufactured in northern Portugal, which is where the one million units for Venezuela will also be produced.

“We are building a solid relationship” with Portugal, Chavez said at the signing ceremony in Lisbon. “We have negotiated [these deals] with our mutual interests in mind.” Chavez added.

The one million Classmate PC laptops that will be produced for Venezuela represent the single largest order so far, giving Intel something to brag about in the face of the One Laptop Per Child (OLPC) project that the Santa Clara, California-based leading chip maker abandoned after just six months of collaboration. The OLPC developed the innovative XO laptop, a $188 portable computer system that is powered by AMD's Geode processor, and is meant to provide a cost-effective solution for educational establishments.

OLPC might, however, turn the tables in its favor as, earlier this month, it announced a pilot program with Peru, after revealing that the XO laptopts would make the transition to the Microsoft Windows XP. On the other hand, the Classmate PC will be distributed in schools in Venezuela and Portugal with a custom Linux-based operating system.

There are no details available regarding the price that the Venezuelan government paid for the acquisition of the one million Classmate PCs. However, the project is part of a much broader deal that is said to be valued at more than US$3 billion.