The new chip will be launched in 2005

Intel says the new chip will emit less heat than existing fast chips.

Faster chip speeds tend to mean that computer systems require costly and noisy cooling systems.

"We're... [accelerating] development of other products that we believe will meet end users' needs," Intel spokeswoman Laura Anderson said.

Projects facing the axe include the fourth-generation Pentium 4 chip, called Tejas, which was to be sold next year, Ms Anderson said.

A new Xeon processor for low-end computer servers is also being cut.

The new chips will combine two microprocessors onto a single piece of silicon.

It is "like putting two cylinders in a car instead of having one big cylinder," technology analyst Nathan Brookwood told AP news agency.