Intel Corp on June 2 announced a new microprocessor line destined to compete in the value ultra-thin sub-notebook market created by rival firm AMD.

The new processors, officially dubbed the Pentium SU2xxx series, come amid investor fear that feature creep in the wildly popular netbook class of sub-notebooks is quickly cannibalizing the sales of higher-margin products with more expensive Intel CPUs.

Though Intel is expected to launch the Pentium SU2xxx series with the SU2700, rumor is emerging that it will now be supported by a lower-cost Pentium SU2300 chip.

The lower-priced SU2300 part arrives at 1.2GHz and could help to shave as much as $90 off the cost of an Intel-powered value ultra-thin by year’s end.