Intel has announced the launch of the Atom N435, which features in the Asus EEE PC X101 and X101H which was unveiled at Computex yesterday.
The processor, which is a 1.33GHz part with 512KB L2 cache, did not feature in the display machines on Asus' booth, although they will be in the final version.
The N435 is based on the 45nm Pineview family and includes GMA 3140 graphics and memory controller. With an estimated TDP of under 5W, the part is expected to be the cheapest Atom on the market.
The launch of the new part will help Intel's partners reduce the cost of the netbooks to less than £150 and will give a significant boost to Intel's own Meego OS and its AppUp application store.
According to PC World at least three other manufacturers, Lenovo, Acer and Samsung will be selling ultra cheap netbooks based on the Atom N435 and with Meego OS which is Linux-based.
Historically, Linux netbooks have been shunned by manufacturers and end-users for a number of reasons so it will be interesting to see whether the same happens this time around.
Microsoft Windows 7 Starter running on the N435 is likely to be very slow and could well be the reason why Intel decided to keep the Atom range clocked above 1.6GHz from the start.