For the desktop market Intel is working on the 32nm Gulftown, this chip is based on the Westmere design and has six cores and 12 threads.
Intel seems to be on schedule with Westmere. The production is supposed to start in Q4 2009 and the server sector will be completed with 32 nanometer processors in 2010. Besides smaller cores Intel expects better performance from Westmere. Furthermore simplified motherboards are supposed to be enough since the system architecture has been overhauled. The integrated graphics unit is a new feature.