SAN FRANCISCO – Intel claims to have found a strong market for its first new microprocessor design in years. The world’s largest computer chip maker will market a new processor, code-named Diamondville, to be introduced near the middle of this year. Targeted for super-compact, mobile PCs, it is expected that it will cost significantly less than processors sold to PC makers.

“At the beginning, we said let’s see what is the opportunity in the emerging markets,” said Mooly Eden of Intel’s Mobile Platforms Group. “Now, I wouldn’t be surprised if at least 50% of the Netbooks would be sold in mature markets.”

Netbook is the name Intel gave to its portable PC, but PC makers such as Hewlett-Packard and Dell, which will use the processor, will market portable PCs under their own names. Referring to marketing studies estimating the potential sales of the Netbook-type PCs that will be sold, Eden said, “I believe the number in 2011 will be well above 50 million.”

Dean McCarron, analyst at Mercury Research, said the Eee PC, the diminutive laptop-style computer marketed by ASUS, sold 350,000 units in the fourth quarter, and has been a very popular product. “Immediately, that attracted the attention of a whole raft of competitors,” McCarron said. Intel’s Eden stated that a typical Netbook would have a diagonal screen size of 7 to 10 inches, indicating that it will be similar in size to the Eee PC.

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