It’s been a while since AMD and Intel have fought head to head in the chip space.  For the last few years AMD has been licking it’s wounds with a depleted war chest and integrating it’s purchase of ATI.  In the netbook space Intel has reigned supreme successful keeping VIA and AMD at bay with deep ties to Microsoft and computer manufacturers.  All of that is starting to slip away.

AMD is beginning their assault on the ultraportable computer space and Intel is starting to notice.  While AMD has been using their MV-40 processors in small notebooks for years they are bringing more attention to themselves now that the masses are clamoring for low-cost small computers.  Lenovo, MSI, Toshiba, and Asus have all started releasing models with AMD chips and both bloggers and customers have noticed the edge AMD provides when it comes to gaming.

The MV-40, L335 and L325 processors get paired with HD3200 ATI graphics which provides a better alternative to Intel’s N450 chip with GMA 3150 integrated graphics.  As a temporary solution some manufacturers have paired Intel chips with ION graphics from Nvidia but this doesn’t happen very often due to the increased price.  This is all shaping up for Intel and AMD to draw lines in the sand as it concerns netbooks.

All of the netbooks using AMD chips have either 11.6 or 12.1” screens.  On the other hand Intel has vehemently defined (with Microsoft’s help) that a netbook is no larger than 10 inches.  This is why many of the more expensive netbooks come with Windows 7 Home Premium instead of Windows 7 Starter edition.  More and more customers are opting for larger screens as the desire to watch online video and play games is increasing.  Previously netbooks were labeled as internet focused applies built to handle email, and light web browsing.

To help counter AMD’s offensive they are bending their own rules to measure the response.  Asus will soon be releasing the Eee PC 1201PN.  This netbook will pair an Intel N450 processor which is usually limited to its 10 inch brothers and sisters with a 12 inch screen and Nvidia ION 2 graphics.  This will ensure that it will have ample battery life while being able to provide the power needed for graphically intense chores.  There is no word on pricing for the 1201PN but if it’s priced anywhere under $500 Intel will have successfully found a way to keep AMD at bay.  If the pricing is over $500 customers will be left thinking long and hard about how much of a premium they are willing to pay for an Intel solution especially as more AMD netbooks are hitting shelves for lower and lower prices.

[Via Fudzilla]

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