Advanced Micro Devices Inc (AMD) customers such as Dell Inc, Hewlett-Packard Co and Sun Microsystems have begun shipping computer systems that use AMD''s next-generation microchip, codenamed Barcelona. The new chip is the company''s long awaited response to rival Intel''s domination of the server market.

Just last week Intel launched the Xeon 7300 in a bid to target network servers. While AMD''s Barcelona targets network servers as well, it is not limited to this segment unlike Intel''s Xeon. The Barcelona is being touted as AMD''s next big design advance. According to analysts, Barcelona boasts of certain features, which give it an edge over rival Intel''s quad core offerings.

AMD says that its design is a ''native'' quad core, that is, it has built four identical cores onto a single piece of silicon. By contrast, Intel connects two dual-core chip designs that have been placed side by side on a chip in order to form a quad core. This design overhaul, according to AMD, allows Barcelona to perform better.

According to analysts, Intel''s own Nehala chips, that use a design similar to AMD''s will only be available after a year.