Intel officials turned up the pressure on rival AMD by demonstrating a 2GHz version of the Pentium 4 this week at the Intel Developer Forum in Taipei, capital of Taiwan.

This dose of Intel whizz-bangery follows the firm's launch of its 1.7GHz Pentium 4 processor on Monday. AMD's current fastest processor is the 1.33GHz Athlon, launched in March.

The 2GHz Pentium 4 processor is slated to ship in the fourth quarter of 2001, said Louis Burns, vice president and general manager of Intel's desktop platforms group.

Intel is going for AMD's throat because the alternative chip maker is gunning for a chunk of Intel's server market.

Intel officials recently announced deep price reductions that are set to take effect 29 April. The company is also going to allow other manufacturers to make Intel chips under licence. This should also mean cheaper chips. See our previous story.