AMD has recently notified its partners it is developing a processor to enter the low-cost PC market alongside Intel's Atom and Via Technologies' Nano CPUs. The new CPUs will be officially launched by the end of this year, while related netbook products will begin shipping in the first half of 2009, according to sources at PC makers.AMD's low-cost PC processor will be based on the company's previous-generation K8 architecture and will support 64-bit instructions. The CPUs will be a single-core model with a frequency of 1.2GHz and will be manufactured on the company's 65nm process.

However...I could see AMD bringing better embedded video to market alongside this CPU. This could be a great opportunity for AMD if they play their cards right - a HD handheld based on the x86 and offering, say, hardware level h264 decoding could be a new market for them. Especially if they continue to open up their hardware specs for developers...
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