The company will cut prices of its Core 2 Quad processor by 50 percent on July 22, according to an Intel document given to clients. The chips, introduced in November to run servers and the most expensive personal computers, sell for $530 each, according to Santa Clara, California-based Intel's Web site.

Intel also told customers it plans to reduce prices of some Core 2 Duo chips by 24 percent to 32 percent on Sept. 2, according to the document. The company doesn't disclose how much of total sales the chip accounts for.