Advanced Micro Devices reportedly plan to compete for the place on the market of ultra low-cost personal computers (ULCPCs) using a previous-generation AMD Sempron-like processor. The new chip is projected to emerge already late this year and the chipmaker is reportedly already negotiating with system makers.

According to news-stories published by Eee PC News and DigiTimes web-sites, the new AMD processor for ULCPCs will sport 64-bit K8 micro-architecture-based processing core, 64KB L1 instruction cache, 64KB L1 data cache, 256KB L2 cache as well as single-channel DDR2 memory controller. The central processing unit is projected to operate at 1.0GHz and sport thermal design power of 8W while being made using 65nm process technology. AMD plans to ship the product in ball grid array packaging, which is ideal for low-cost, low-power, small form-factor systems.

The new chip resembles currently existing AMD Sempron processor in many ways, though, pricing of the product is projected to be lower than that of Intel Atom processors for the same market segments. Since AMD64/K8 micro-architecture is generally more advanced than that of Intel Atom or Via Nano, AMD’s chip may offer considerably higher performance than its rivals.

Advanced Micro Devices did not comment on the potential AMD Sempron-derivative for ULCPCs market, however, the company is well-known for its 50x15 program of promotion low-cost systems for emerging markets as well as for some other initiatives, including Personal Internet Communicator, OLPC XO laptop based on AMD Geode and some other projects.

The world’s second largest maker of x86 microprocessors had reportedly already started to negotiate about supplies of new chips with Acer, HP, MicroStar International (MSI) and some vendors in China.