High demand for Intel Atom chips

From Times Wire Services

Intel Corp. said it was stepping up production to meet higher-than-expected demand for Atom, a new processor for low-cost portable computers.

Chief Executive Paul Otellini is using the processors to attract consumers who want stripped-down computers for word processing and surfing the Internet.

Computers based on the chip will cost as little as $250 and will debut in the third quarter, Santa Clara, Calif.-based Intel said.