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Previously codenamed Silverthorne and Diamondville, the Atom processors will power mobile internet devices and ultra low-cost notebook and desktop PCs. Intel showed PC Pro a selection of these devices at CES 2008 - click here to see our video of the devices in action.

The Intel Atom processor is based on a new microarchitecture designed for small devices and low power consumption. The chips have

The chip is less than 25 square millimeters, and 11 of the chip's dies would fit in an area the size of a small coin. The new chips, are made on Intel's 45 nanometer technology and slated for introduction toward the middle of this year.

"Diamondville and Silverthorne both represent an attempt by Intel to sell chips profitably for a whole lot less," says Nathan Brookwood, an analyst at market research firm Insight 64. "This is the first new processor design coming out of Intel since the Pentium Pro in 1995."

Intel has also announced the Intel Centrino Atom brand aimed specifically at mobile internet devices, formerly codenamed Menlow. Centrino Atom includes the Atom processor, a low power companion chip with integrated graphics and wireless radio.

Atom is "a fundamental new shift in design, small yet powerful enough to enable a big internet experience on these new devices," claims Sean Maloney, chief sales and marketing officer for Intel. "We believe it will unleash new innovation across the industry."