Intel is disclosing more details on its plans to release 32-nanometre processors by 2009.

Following his disclosure that 2006 profits will likely fall 23 per cent to $9.3 billion, Intel CEO Paul Otellini soothed financial analysts with a short-term plan to cut costs by restructuring the company over the next 90 days. But in the long term, the road to higher profits lies with smaller chip geometries, he said, during remarks at the company's Spring Analyst Meeting in New York.

By the third quarter of 2006, the company will be making more chips with 65nm geometry than 90nm.

Core chips face major speed ramp

That change allows Intel to upgrade its current Netburst microarchitecture family of chips, known as Presler, Yonah and Dempsey. Those processors are sold as Pentium D for desktops, Pentium M for mobile PCs and Xeon for servers.

Intel plans to launch its new, Core microarchitecture line beginning with the Woodcrest chip for servers in June, its Conroe chip for desktops in July and its Merom chip for mobile PCs in August.

Sometime in 2007, Intel will build a 45nm version of the Core chip family called Penryn. By 2008, Intel will upgrade its microarchitecture in a chip called Nehalem.

The company will move to 32nm design by 2009, shrinking that chip line into a design called Nehalem-C. And by 2010, Intel will upgrade its microarchitecture again for a future line of chips called Gesher.

If current trends continue, Nehalem and Gesher will be extremely fast and efficient processors.

Power efficiency is critical

Intel claims that its new 65nm, dual-core chips are three times more power efficient than their 90nm, single core predecessors.

They are also more powerful. The new Conroe chip for desktops will be 40 per cent faster than the Pentium D960, the new Merom chip for mobile PCs will be 20 per cent faster than the Core Duo T2600, and the new Woodcrest chip for servers will be 80 per cent faster than the Xeon 2.8 GHz.

There are two ways Intel can make maximum profit in selling these new chips, Otellini said.

In markets, the company will target ultramobile PCs in the US and emerging economies in China, India and Latin America. Each sector could generate sales of 100 million units per year, he said.

Intel also makes a lot of money on its chips by bundling them into platforms, such as Centrino for mobile wireless, Viiv for home entertainment and the new vPro for business desktops. Those three brands alone will account for more than 25 per cent of Intel's revenue in 2006, Otellini said.