Intel isn't losing any ground with 65nm rollouts. They've now shipped over 1 Million 65nm dual-core CPUs, the only company to do this as of yet. The 65nm parts Intel has available as the Duo series used in Macs, P4 D 9xx Presler core CPUs, and the P4 EE 955. Intel is already using 300mm wafers for their parts, letting them step up production as compared to the former standard of 200mm wafers.
"Intel is currently punching out 65nm chips at two 300mm-wafer fabs: D1D in Hillsboro and Oregon and Fab 12 in Chandler, Arizona. Two further facilities will be producing 65bn chips in volume by the end of the year, Intel director of process architecture and integration Mark Bohr said."
As early as Q3 of this year, Intel will be shipping more 65nm parts than 90nm, giving desktop Intel users a much-desired drop in heat output.