Advanced Micro Devices Introduces Faster Duron Microprocessor

Advanced Micro Devices (AMD Quote) Monday is introducing a faster version of its low-cost Duron microprocessor for use in personal computers that typically cost less than $1,000.

AMD's 850-megahertz chip is faster than the 800-megahertz chip that had previously led its Duron line. The move comes just a week after its largest competitor, Intel (INTC Quote), also introduced a speedier low-cost chip, an 800-megahertz Celeron.

AMD is the second-largest U.S. chipmaker behind Intel and has been trying to increase its market share, particularly with its high-end Athlon chip, which competes with Intel's Pentium products. The Duron is making its debut in Compaq (CPQ Quote) personal computers on the Home Shopping Network.

"The 850 Duron helps maintain our position in the value space by providing high performance at a relatively low cost," said Linda Kohout, product marketing manager for Duron. End customers who use a PC with the chip might notice the higher speed in some software applications. It also could take less time to encode audio or video clips, Kohout said.

AMD said the 850-megahertz chip would cost $171 or less -- the price at which the 800-megahertz had been sold. Intel's new Celeron chip was priced at $170.