In addition to low-cost processors for netbooks and advanced central processing units for fully-featured notebooks, Intel Corp. plans to release a breed of inexpensive chips aimed at affordable thin-and-light notebooks, according to a media report. The new family of microprocessors will compete directly against AMD’s recently launched Athlon Neo processor.

Package size of Intel’s new mobile processors will be 22mm x 22mm, according to a story by Cnet News.com web-site, which is inline with processors inside Apple MacBook Air and other highly-portable thin laptops. The key difference between the forthcoming processors and those used in machines like Voodoo Envy is price: the new central processing units are projected to be very affordable.

Exact specifications of the new processors are not clear, but the media report, which cites sources close to Intel, claims that the chips will be a “tweak” of Intel’s existing ultra low voltage (ULV) microprocessors based on Core 2 micro-architecture, which may imply that the new processors will have thermal design power of just 10W, considerably lower compared to standard mobile Core 2 Duo chips.

The rumour emerges just days after Advanced Micro Devices unveiled its code-named Yukon platform that features single-core AMD Athlon Neo processor in small packaging aimed at thin-and-light laptops.

In case the price of the new Core 2 processors for cost-effective thin-and-light laptops is comparable to AMD Athlon Neo, then the new chips will compete against each other head-to-head. However, if Intel decides to enable mainstream notebooks with its small form-factor CPUs, then there will be no direct competition between the new Core 2 ULV and AMD Athlon Neo.

It is unclear when the new Intel Core 2 ULV chips for inexpensive thin-and-light systems hit the market.

Intel did not comment on the news-story.

Tags: Intel, AMD, Core, Athlon, Athlon Neo