Intel announces breakthrough Core 2 Duo processors with 40 percent performance boost

The Core 2 Duo marks a change in Intel's approach to chip making, as the company admitted it had hit a technical wall since its 1990s dominance, which was powered by the huge leap in speed that the Pentium processor offered.

Now the company has focused on shrinking circuitry, allowing them to affix two computing engines to a single piece of silicon, which gives computers as much as 40 percent improved performance while still emitting less heat, the company says.

Intel Chief Executive Paul S. Otellini said that the company planned to ship at least one million chips out in the next two months, which would get them into the PCs of computer makers in time for the holiday season. Intel has said that systems based on the Core 2 Extreme -- Intel's processor developed for video games -- are already available, and Hewlett-Packard, Gateway and Dell have all announced they will sell PCs equipped with the Core 2 Duo.

This move could be just what the company needs to regain its former dominance, which has slipped over the last three years to Advanced Micro Devices (A.M.D.). The smaller company has become known for its faster and more efficient processors, leading to its acquisition of five market share points last year, according to technology research company Mercury Research.

A.M.D. released a response to Intel's announcement stating it “is now quite accustomed to Intel reacting and attempting to follow (their) lead” in the market.

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