Looks like AMD finally realized that Nehalem is a serious competitor for the K10.5 CPUs. In this sense, after Deneb and Propus 45nm K10.5 Quad-cores AMD wants to change the process and improve the existing K10.5 cores.
The future process is called 45nm K10.5 Rev. D and it will bring the High K gating technology developed with IBM’s aid to 45nm SOI cores. As you have already intuited, the K10.5 Rev. C is the 45nm SOI process that AMD is supposed to use with the upcoming Deneb and Propus 45nm cores. AMD also came up with the Hydra codename for the Rev D cores, which seem to be the true response to Intel’s Nehalem.
The K10.5 Rev. D introduces 1MB L2 per core, which is twice as much as in current K10 CPUs, plus 6MB L3 cache memory. The Hydra CPUs are set to include at least eight cores, most likely coming in eight-core native design and not the recently announced MCM (Multi Chip Module).
Hydra CPUs are expected to easily hit +3GHz clock speeds in standard mode, but AMD will hopefully allow for fair overclocking potentioals.
That said, Nehalem will probably hold the crown for at least six to nine months before getting a real competitor. This is because AMD is rolling the Hydra CPUs sometime in mid 2009 or even later.
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