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As reported, Intel have demonstrated their dual-core Itanium technology in the opening keynote of the Intel Developer Forum. President and COO Paul Otellini demonstrated a "Montecito" CPU, which boasted 1.72 billion transistors and 2x12 MByte of L3 cache for a total of 26.5 MByte of cache memory. The new chip is about 25% faster than current Itanium 2 chips.
A bit of a clue here for future developments, Intel wants to refer to the chips as being "multi-core" or "many-core" as opposed to "dual-core". Its no secret that quad (or even greater) core chips are on the drawing board for future release.