AMD's K6-2 will compete in the budget PC market

Advanced Micro Devices (AMD) boosted its K6-2 processor lineup on Tuesday with the introduction of a 550MHz K6-2 chip.

The processor accelerates the chip's clock speed over AMD's own 533MHz K6-2 chip as well as Intel's 533MHz Celeron. The chip will cost $189 (£117) in 1,000-unit quantities.

The K6-2 will compete with Intel's budget-priced Celeron line, and aims to take advantage of the booming market for low-cost PCs. Several manufacturers already use the K6-2 for desktops and notebooks, including eMachines and Hewlett-Packard.

AMD makes the fastest processor currently available in full production quantities, the 850MHz Athlon.

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