AMD is preparing to compete with rival chip maker Intel in the emerging low-power and ultra low-power processor space with a new type of processor core dubbed 'Bobcat' to be used in cell phones and other consumer devices where power and portability is important.

Bobcat will consume between 1W to 10W of electricity, and will be developed on the same x86 processor architecture as AMD’s PC and server chips. The company expects the new processor to hit the market sometime in 2009.

However, AMD might be a little late to the mobile and embedded application space, as companies such as ARM, of England, developer of the Advanced RISC Machine (ARM) processor architecture currently dominates the smart phone space. Still, the move represents an important counter thrust as Intel pushes into the same market with its Silverton platform announced last year. AMD executives believe that there is growth potential in the smaller device end of the market.