In a keynote address here at the Microprocessor Forum, Intel fellow John Crawford said such a design is "imminently doable" from a die-size and manufacturing standpoint and that "we would expect something of this nature coming out."Read more @ SiliconStrategies
Crawford did not disclose specific plans for such a processor, though he said Intel will be able to design and build a 1-billion-transistor microprocessor using 65-nanometer process technology by 2007.
Crawford went on to describe a hypothetical processor that would contain four Itanium 2 cores and 12 to 16 megabytes of shared cache memory, all connected through a leaf interconnect scheme. Each Itanium 2 processor would contain about 120 million transistors while the cache would carry 700 million to 950 million transistors, bringing the total transistor budget to well over 1 billion, he said
Other technologies Intel is developing would improve the performance of managed run-time environments like Java and .Net; incorporate more hardware features to deter hacking; and slow down certain paths in a processor design with too much "slack" in order to contain chip size and power consumption, Crawford said.
Intel describes quad core Itanium processor

Intel described yesterday how it could combine four Itanium 2 cores that share a large cache memory to create a processor with more than 1 billion transistors :