Word is going around that AMD may unveil a new dual-core processor based on the 45nm Deneb core. The part is reportedly called Callisto, it has 6MB L3 cache and will compete against the low-end Core 2 Duo and Pentium processors from Intel. You can expect the first Callisto chips in the second quarter of this year.
Reportedly, Callisto will be based on the 45nm Deneb core that's inside AMD's new Phenom II X4 processors. Just like with the current, Phenom-derived Athlon X2 7750, AMD will simply disable two cores and keep the shared L3 cache intact (6MB in this case). Considering Deneb can match 45nm Core 2 Quads, Callisto could be a formidable competitor to Intel's low-end Core 2 Duo and Pentium processors.