According to Intel’s announcement on June 8, the company may implement price reductions on its processors sooner than previously expected, as they have finalized the new chip manufacturing technology.
In recent months, the world’s largest chip manufacturer has declared price cuts on several product lines, partly to clear inventory and partly to regain market share currently held by AMD. Many analysts believe that Intel will have more rounds of price cuts, especially for the Pentium line.
The price reduction initiative by Intel is also due to the approval of new processing technology – 65nm, featuring a surface with fewer than 300 molecules and a thickness that is one-quarter less than the previous technology used for wafers.
Smaller chips not only save more energy and are more powerful but also reduce production costs by increasing the chip density on individual silicon wafers.
Intel is also making efforts to “pave the way” for its new chip line, recently named “Core,” in hopes of bridging the gap in energy efficiency and performance with AMD’s chip offerings. The “Core” line will replace the Pentium brand, which has been synonymous with Intel for many years.
