Semiconductor firm AMD (NYSE: AMD) has introduced its first product based on a more advanced manufacturing process that allows the company to make faster and more energy efficient processors.

The Sunnyvale Calif.-based company said on Monday that it has begun using a 65nm manufacturing process to build its chips, a technique that will allow increased production capacity, and will yield products with reduced power consumption. AMD's Athlon 64 X2 processor using the new process will be immediately available, the firm said.

Customers continue to demand solutions that focus on low-power consumption and quieter operation, said Bob Brewer a vice president at AMD. AMD is responding by increasing manufacturing efficiency to deliver on the next generation of energy-efficient desktop processors, enabling OEMS to innovate using highly reliable AMD64 processors and without compromising performance.

The move aligns the company with its cross-town rival, Intel Corp (NYSE: INTC), which began using the manufacturing process with the introduction of the Woodcrest server processor this summer.

AMD expects that its fabrication plant, Fab 36, in Dresden, Germany will fully converted to 65nm production by mid-2007.

Intel