AMD used its second quarter conference call to calm analysts and answer Intel's challenge by announcing that it has accelerated its product strategy. According to president and chief operating officer Dirk Meyer, 65 nm processors will roll out in the fourth quarter of this year at "mature yields" and quickly spread through AMD's product line. The company also intends to decrease the manufacturing gap to Intel: 45 nm processors will be launched within 18 months after the debut of the 65 nm generation, which indicates an H1 2008 launch of those processors. Typically, Intel and AMD take about 24 months to transition to a new manufacturing process: With Intel being on track to introduce 45 nm in late 2007/early 2008, it seems that AMD will try to tackle Intel at the rival's core strength and may cut its current 12 month disadvantage in half.
Meyer also reiterated that AMD is working on a new processor core, which will debut as a native quad-core. Code-named K8L, the chip will launch by mid-2007 or more than half a year after Intel's Kentsfield and Clovertown quad-core processors. Compared to the competition, K8L is expected to consume significantly less power than Intel's quad-cores, which basically combine two dual-core processors into one package.