
The transition of indoor location positioning into chips is a trend identified in the newest Grizzly Analytics report on Indoor Location Positioning Technologies, released the week before MWC 2015. By moving indoor location positioning from software into hardware, chips such as Intel's enable location positioning to run continuously and universally, without using device CPU, and with less power consumption.

While many applications need sub-meter accuracy, universal and continuous technology can deliver indoor location positioning to a wide range of applications, including social networking, picture geotagging, friend-finding and location-sharing, location-based reminders, emergency call geolocation, and more.
Intel's chip uses standard protocols to access the locations of 802.11mc-compliant Wi-Fi access points in area, and uses 802.11mc's Fine Time Measurement to measure the distances between the device and each access point. Multilateration then gives the device's location, the place that is the specified distances from the various access points.
The video below shows their technology in action, moving around the Intel booth at MWC. It's important to remember that this technology demonstration is based only on Wi-Fi based positioning, and does not incorporate motion sensing or other complementary technologies. Presumably a production-ready system would incorporate sensor fusion motion sensing to deliver an even smoother and more accurate experience. Given that, this demo is even more impressive.
For more details on indoor location technologies from over 150 companies, see the latest Grizzly Analytics report on Indoor Location Positioning Technologies. For more on chip-based indoor location positioning, see a video of Broadcom's technology here and details of Qualcomm's chips here.
Here's the video of Intel's technology demo:
We're looking forward to having chip-based indoor location positioning of this sort in our next smartphones!