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Chip price war brewing?

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Intel has cut the prices of some processors by at much as 50%, but it doesn't necessarily signal a new price war in the competitive chip market. 

Most of the chips being offered for lower prices are 65-nanometer technology, which Intel is currently phasing out as it builds up its 45-nanometer capacity.
Altogether, about 12 different microprocessors will be offered at reduced prices, ranging from 50% discounts on Core 2 Quad processors and Xeon chips to 23% off Celerons.
The price-cutting move is widely expected to impact on AMD, which has only recently sorted out some teething problems with its Barcelona chip.