Hot on the heels of its Pentium 4 announcement, Intel will launch a 1.13GHz Pentium III processor on July 31.
With CPU supply outstripping demand by 5 to 7 per cent quarter after quarter according to the company, Intel is working to ramp up operations with plans to double its output.
"Correcting the supply imbalance fuels our product road map," said Intel's desktop platforms marketing manager, Jeff Krista.
The 1.13GHz processor will ship in limited volume initially, with more CPUs available in the second half of the year, although Intel anticipates some OEM machines will be available at the end of this month.
The processor is built on the same so-called Coppermine core used in the current crop of Pentium III processors, which run at clock-speeds of up to 1GHz.
The release date of the Pentium 4 chips have yet to be announced. Code-named Willamette, the chip required a complete reworking of the platform architecture, Krista said.
The Pentium 4 will utilise the more expensive RDRAM technology, rather than standard SDRAM. Intel says it will continue to support SDRAM at the lower levels but the company was "very committed" to the use of RDRAM as a "key element" to its future technology.
"It is not the cheapest technology, but as the production evolves and the cost decreases, we feel real benefits will emerge," Krista said.
Intel Australia's general manager, David Bolt, said the Internet remained "the big unknown" in dealing with the company's supply issues. He blamed the cpu shortage on the lack of accurate forecasting within the channel.
"We ask for as much advanced warning as possible, and smaller operators are typically not able to do that," he said.