Chip Giant Intel today launched its first server processors that place multiple microprocessors on a single piece of silicon today reports New York Times.

The new dual-core Xeon chips for two-processor servers promise up to a 50 percent improvement over systems with two single-core processors, said Shannon Poulin, director of product marketing at Intel's Server Platform Group.

New York Times writes the announcement months ahead of schedule shows "Intel stepping up its efforts to compete head-to-head with Advanced Micro Devices, which introduced its first dual-core server chip in the spring."

"We are very committed to enabling the industry for dual- and multi-core, and that's why we were taking a very measured approach to getting these out there and putting them in platforms," Poulin said.

The new Xeons cost $1,043 each when bought in volume.