AMD launched three new chips yesterday and cut the prices on all its mobile chips as well as its Duron desktop line.

Yesterday was launch day for AMD's 1.1GHz Mobile Athlon 4, once again bringing AMD and Intel within arm's reach in the speed war. Intel's fastest mobile processor, the Pentium III-M, currently runs at 1.13GHz.

AMD also used the occasion to launch a 900MHz mobile version of its entry-level chip, the Duron processor, and a 1GHz desktop version of the Duron as well. The 1GHz Duron is AMD's first offering based on the new core called 'Morgan', designed to offer better performance on internet multimedia applications that involve content such as photos, music and video.

Compaq will be among the first vendors to launch systems based on the new processors, offering both new mobile processors in its Presario 1200 family of notebooks, AMD said.

To make room for the processors, AMD also cut the prices of all processors in the Mobile Athlon 4, Mobile Duron and desktop Duron lines, according to information on the company's website.

Price wars between AMD and Intel have escalated recently; Intel has not cut prices since July but is expected to do so very soon, perhaps by as much as half.