Intel Gears Up to Launch Quad-Core Chips

SAN FRANCISCO — Intel is ready to up the ante for computer microchip manufacturers. The world’s biggest microchip maker announced that it is producing chips with four processing cores.

The new chips, called Core 2 Quad Extreme, are intended for use in high-end servers and high-speed gaming PCs. Intel CEO Paul Otellini told the Intel Developer Forum that cheaper chips intended for mainstream consumer use should be released by early 2007.

Intel’s announcement ramps up its heated rivalry with Advanced Micro Devices. Once the dominant leader, Intel has been losing ground to AMD, and suffered a severe blow when Dell announced in May that it would no longer exclusively buy Intel microchips for its server systems.

To help reverse its loss of market share in recent months, Intel sold off two underperforming units and said it will cut 10,000 jobs — 10 percent of its workforce.

Intel’s four-core chips will be marketed under the Xeon brand Otellini said. The new chips, which require more power, would be up to 70 percent faster than current dual-core chips. Thirteen PC makers, including Dell, Gateway and Alienware, will be making quad-core systems.

Otellini shrugged off power concerns saying, “By the end of the decade, we will deliver a 300 percent increase in performance per watt over today’s processors.”

Expected to launch in limited initial release for gamers and content creators, the chips are expected to hit the market with a hefty price tag of $1,000.

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