Intel Set To Introduce New, Speedier Version Of Pentium 4 Processor Chip To Run At 2.4 Gigahertz Intel making the processor with a different technique, which could help cut prices.(INTERNET & TECHNOLOGY)

Byline: JAMES DETAR

Intel Corp. is keeping the pressure on rivals in the hotly contested race to make the chip of choice for personal computers.

As early as Tuesday, the company plans to unveil its best-performing chip ever. It will take the wraps off of a 2.4-gigahertz version of its flagship Pentium 4 line.

The new chip isn't even a 10% speed jump from Intel's current top-end chip, a 2.2 GHz Pentium 4. But the newest chip has significance beyond mere speed. It's the first chip that Intel is making with new manufacturing techniques that will result in smaller chips that cost less to make.

This will give Intel larger profit margins and let it price the chips lower than it could otherwise. That, ultimately, lowers the prices of PCs, consumer electronics and other products that use the chips, analysts say.

The new chips will be 5% to 10% smaller in size than today's P4s, analysts say.

"That's good in that the smaller you can make the die, the lower the costs are to make it," said Meta Group analyst Steve Kleynhans in Toronto.