Intel's new chip, code-named Tualatin, is a long-awaited, 0.13-micron version of the company's Pentium III processor line. At present, the Pentium III is based on a 0.18-micron technology, but the processor family is running out of steam, analysts said.

At a recent press briefing in Hillsboro, Ore., officials from Intel confirmed the existence of Tualatin, saying that the product will be rolled out in July.

But Intel denied the company was experiencing problems in ramping up its 0.13-micron technology. Last month, chip-equipment vendor Silicon Valley Group Inc. confirmed a three-to-four month delay in shipment of its new scanner, which is based on 193-nm, argon-fluoride (ArF) laser technology (see April 25 story). The delay is impacting Intel and other customers.

Company executives also denied reports that said SVG's tool delay would impact Intel's migration to 0.13-micron technology (see April 27 story).

"The various press reports are wrong," insisted Sunlin Chou, senior vice president and general manager of the Technology and Manufacturing Group, during a question/answer session at a briefing last Friday.

The SVG tool delays "have not impacted our migration to 0.13-micron technology," Chou told reporters and analysts. "Our 0.13-micron migration is doing well."

While Intel did not elaborate, Tualatin will solidify the company's position "in the mobile and value PC markets," said analyst Nathan Brookwood, principal of InSight 64 Research in Saratoga, Calif.

On the mobile front, Intel's Tualatin will come in two speed grades--1.16- and 1.26-GHz. These chips will eventually replace the older Pentium III MPUs in the mobile arena.

In the value PC segment, Tualatin will be offered at 1.13- and 1.2-GHz. Over time, these chips will replace the Celeron, Brookwood said.

In fact, Tualatin is already in the hands of key OEMs. "If Intel plans to announce the product in July, then I'm sure that they began sampling months ago," Brookwood said.

On the mobile front, Intel's Tualatin is expected to compete against products from AMD and Transmeta. In fact, on Monday, AMD claimed the lead in high-performance processors for portable PCs with the launch of a 1-GHz AMD Athlon 4 and new speed grades of Duron chips for lower cost systems (see May 14 story ).

AMD's new Athlon 4 portable PC central processing units push CPU speeds to 1 GHz, while the Duron takes performance up to 850 MHz in the "value" segment of portable personal computers. The 1-GHz Athlon 4 hits the market at a price of $425 each in quantities of 1,000, while the 850-MHz Duron is priced at $197, said the Sunnyvale company.

In the notebook space, Transmeta has been making the most noise by garnering an impressive list of design wins. Many of its OEMs are Japanese PC makers--which are also Intel's best customers.

Earlier this month, notebook PC giant Toshiba Corp. announced a new notebook PC based on Transmeta's x86-compatible Crusoe microprocessor line (see May 7 story).

The introduction is seen by industry observers as the biggest design win yet for Santa Clara, Calif.-based Transmeta, which is attempting to compete with giant Intel Corp. and carve out a position in portable PCs.

Toshiba said it will make its Crusoe-based notebook available in Japan on May 18. The 2.4-pound computer--called Libretto L1/060TNMM--will offer 14 hours of battery life using a 600-MHz central processor from Transmeta.

On the value side, Intel's new chip will compete against AMD's Duron and Via Technology's Inc.'s MPUs. In this segment, Taiwan's Via recently disclosed its new microprocessor roadmap, including plans to develop an x86-based product with speeds up to 1.2-GHz (see May 1 story ).