More than a dozen server OEMs have endorsed the new Xeon chip, which is based on a 900-MHz Pentium III processor core, advanced Level 2 cache, and other features.

Compaq Computer, Dell Computer, Fujitsu-Siemens, Gateway, Hewlett-Packard, IBM, NEC, and Unisys, are expected to roll out their systems based on the chip this year.

Designed for four- and eight-way servers, the new Xeon is said to be 20% faster than the company's existing 700-MHz Pentium III chip, said Mike Fister, vice president and general manager of Intel's Enterprise Platforms Group.

Intel's high-end Xeon processor features 2-Mbytes of "on-die" level-two (L2) cache and a 100-MHz system bus. The 2-Mbytes Advanced Transfer Cache memory with Advanced System Buffering increases the width of the data pathway to the processors and reduces latencies.

The processors are built using the SC330 cartridge, which enables OEMs to use existing server platform components. On-cartridge voltage management and manageability features provide increased system reliability along with remote monitoring and system diagnostic capabilities.

The Pentium III Xeon processor is $3,692 in 1,000-unit quantities.