Intel Unleashes Faster Chip

AMD's stock, which closed Friday at $12.37, is down 38% since the start of the year.

Intel's stock is up 23% this year based on its closing price of $25.15 Friday.

Intel's Penryn chip is essentially a "shrink" of Intel's existing processors based on the Core architecture, released in 2006. Instead of 65-nanometer transistor gates in Intel's current crop of chips, Penryn features transistors that measure 45-nanometers, delivering a performance boost, extra features and a reduction in production costs.

Intel has also made a big switch in the design and material of its transistors, replacing the long-used silicon dioxide material with so-called High-k metal gates that use Hafnium material. According to Intel, the new material and gate structure reduces the leakage of electrical current.

Of course, moving to a brand new material and transistor structure adds an extra layer of risk to the manufacturing process.

Intel spokesperson Bill Calder said Intel is confident in its ability to manufacture in volume with the new materials, having spent roughly two years perfecting the process.

"From all signs right now the ramp looks equal to, if not maybe slightly faster than normal," said Calder.

>To order reprints of this article, click here: Reprints