Intel on Monday launched the first Pentium 4 processor based on its 90 nanometer manufacturing process. The chipmaker is introducing the processor with unprecedented aggressive pricing, according to analysts. The new processors, which were code-named Prescott, begin at $178 each in quantities of 1,000 for a 2.8-GHz device, and range to $417 for the 3.4-GHz version.

The production of the devices on 300-mm wafers, with a die size that is about 30% smaller than rival Advanced Micro Devices Inc.'s processors currently manufactured on a 130-nanometer process and 200-mm wafers, provides Intel with the ability to offer the most cost-effective high-end microprocessors available, says Bill Siu, VP and general manager of Intel's Desktop Platforms Group.