Intel, Advanced Micro Cut Prices on Chips

Intel Corp., the world’s biggest semiconductor maker, slashed prices by as much as 35% on processors for personal computers to make way for newer chips and take advantage of lower factory costs.

The desktop 3.2-gigahertz Intel Pentium 4 chip dropped to $417 from $637 each in batches of 1,000, and the 3-GHz version fell to $262 from $401, according to a price list posted on the company’s Web site.

Advanced Micro Devices Inc., Intel’s biggest competitor, cut prices on chips for servers and desktop and laptop computers by as much as 40%.

Shares of Intel, based in Santa Clara, Calif., rose 34 cents to $31.42 on Nasdaq. Advanced Micro, based in Sunnyvale, Calif., gained 26 cents to $13.85 on the NYSE.