Intel is planning price cuts to its lower-end mainstream quad-core processors on January 18.
Barron's Tech Trader Daily first reported the news, citing Pacific Crest analyst Michael McConnell.
These cuts are happening because of the recent introduction of Advanced Micro Devices' 45-nanometer Phenom II and "Shanghai" Opteron processors.
AMD's quad-core Phenom II "Dragon" processor platform has been garnering solid reviews and its Shanghai server chip has been adopted by top-tier server suppliers including Hewlett-Packard, Sun, Dell, IBM, and Fujitsu.
Cuts are expected mainly on quad-core processors, though other processors may also receive cuts.