The new Zune is the first major design win for the mobile chip, which NVIDIA has been talking up since 2007.

In October, Intel, Advanced Micro's competitor, released a similarly priced mobile chip, the 933-megahertz mobile Celeron.

Advanced Micro, the second-largest maker of chips for desktop personal computers, behind Intel, said it would call its high-end mobile chip the Athlon 4.

Seven desktop chips are available now, with five mobile chips to be released in August.

Intel's announcement Tuesday coincided with an announcement by Texas Instruments that it was also reducing power consumption in some of its mobile chips.

Hopefully Intel uses the breathing room, not to destroy AMD, but to fix it's mobile chips.

For the first time, Intel is designing the mobile chip from scratch, instead of tweaking its desktop chip to run better in notebook computers.

The claim that Samsung is going with the Tegra 2 contradicts earlier reports which indicated that the company was planning to build its own dual-core mobile chip.

Technology has finally reached a point where these mobile chips have the power to decode any video thrown at them.

The company said demand for the mobile chip was strong in the second quarter.