In particular, Nano paves the way for notebook manufacturers to deploy Via's chips in computer designs optimized for Blu-ray Disc video playback and more demanding PC games. Moreover, Nano offers aggressive power and thermal management capabilities that Via Technologies CEO Wenchi Chen said are critical requirements for OEMs designing thin and light laptops as well as mini-notebooks.

"'Small is Beautiful' is more than a design strategy; it's our vision of where the PC market is heading, and our new processors will help the market realize that dream," Chen said. "Via Nano processors represent the next generation of x86 technology, providing the fundamental building blocks for a new genre of optimized computing solutions."

Aimed at Emerging Markets

The new Nano processors are pin-compatible with existing VIA C7 processors, which means they will provide OEMs an easy upgrade path, noted Matthew Wilkins, a principal analyst at research firm iSuppli.

"That's certainly an advantage for OEMs in terms of the motherboard design and the layout," Wilkins noted. "It cuts down on the amount of effort that some of Via's OEM partners in Taiwan will have to make to bring new products more quickly to market."

Wilkins also said it is significant that Via is targeting lower power consumption with the launch of its latest chip family. "It fits in very well with the low-cost PCs that are getting a lot of attention right now," he said.

For example, Asus now offers a mobile computer called the Eee PC that is quite significantly lower in price than other similar products. "It has received enthusiastic reception with the press and tends to sell out very quickly in the stores," Wilkins said.

"And there is also the fact that these very low-cost products are very much targeted at emerging markets, where a lower price point is absolutely necessary," Wilkins added.

Challenging the Atom

Nano represents Via's competitive response to Intel's new Atom processor family. Nano power consumption ranges from five to 25 watts and "five watts is sort of competitive with the Atom's power-consumption level," Wilkins said.

Nano's compact 21mm x 21mm chip packaging and low idling power consumption of just 100MW should allow the new chips to gain some traction in new OEM designs for thin and light notebooks and mini-notebooks. However, it will not be easy for the Taiwan-based chipmaker to challenge chip giant Intel for a slice of the ultra-mobile-devices market.

Wilkins observed that Intel is still ramping production capacity for the Atom, which is "a good indication" that a significant number of orders for Intel's new chips have been placed.

"Certainly there is a lot of market buzz around the Atom right now," Wilkins noted. "I think we will hear a lot more about Atom at Computex in Taiwan and see more announcements and demos by the OEMs who will be using it."

Via says Nano processors clocking in the 800-MHz to 1.8-GHz range are available right now for deployment by OEMs and motherboard vendors. Computing systems featuring Nano processors are expected to hit the market in the third quarter.