Intel chief technology officer Justin Rattner recently confirmed rumors that the chip maker is indeed working on a smartwatch. The admission came during the Bloomberg Next Big Thing conference where the executive said the watch was part of the company’s exploration into novel display devices.

Rattner hinted that such a device from Intel may have the capability to display text messages. He didn’t drop any other hints about the watch but the admission alone is significant as it could lend some credibility to another rumor that originated late last year.

At that time, a Chinese website claimed Intel was working with Apple to develop a watch that would use a 1.5-inch PMOLED display from RiTDisplays. The device was said to use ITO-coated glass while the watch itself would connect to Apple devices via low-power Bluetooth 4.0.

Whether or not Apple, a company that has been keen on distancing themselves from outside help as of late, actually needs assistance from Intel is unknown. Many believe that a smartwatch like the rumored iWatch would offload most of the “processing power” to the device it is connected to – an iPhone.

Wearable computing, as it’s often termed, is expected to be the next big thing in technology. Revenue from existing devices is expected to hit $800 million by the end of this year – a figure that’s forecasted to swell to $1.5 billion in 2014 led by several big names like Acer, Google, Microsoft and Samsung.