Intel launch quad-core chips in November

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Intel Corp. will make chips with four processing cores in November the world's biggest microchip maker said on Tuesday as it tries to maintain a lead over rival Advanced Micro Devices Inc.

The chips -- to be called Core 2 Quad Extreme -- are meant for high-end servers and gaming computers, with cheaper versions due out early in 2007, Chief Executive Paul Otellini told the Intel Developer Forum in San Francisco.

Intel's current top-end chips have two processing cores, allowing them to better process multiple tasks at the same time. The company has said its future chips will eventually contain dozens or even hundreds of cores.

The four-core chip for servers will go on sale this November under the Xeon brand, with a lower-power version rolling out in the first quarter of next year, Otellini said.

Santa Clara, California-based Intel has been losing market share to rival Advanced Micro Devices Inc. and hopes new products combined with steep discounts on older models will help reverse that slide.

Over the past few months, Intel has also announced the sale of two under-performing business units and said it will reduce its workforce by 10,000 jobs -- or 10 percent -- to help cuts costs and stay competitive.

Intel shares rose 1.1 percent to $19.63 in early afternoon trading. The stock is down by about a quarter since the start of the year, compared to a slide of about 17 percent for AMD.