The lastest 2.4GHz Xeon processor should ship in systems from Dell, Compaq, Hewlett-Packard, IBM and others over the next few months, Intel said.
The chip comes with 512Kbytes of level 2 cache and is the first Xeon built on Intel's .13 micron manufacturing process that makes it possible to produce more chips per wafer. Intel already offers a Xeon running at up to 2.2GHz.
The chip is designed for workstations and low-end servers with one or two processors, the company said in the statement. Such servers are, typically, used for basic tasks such as caching and Web serving.
Intel has dominated the market for low-end servers, but could face more competition as Sun Microsystems prepares to launch servers with the Linux operating system with chips based on Intel's x86 architecture.
Intel will also makes its E7500 chipset for dual-processor servers and 860 chipset for dual-processor workstations available for the new Xeon.