Intel could unwrap a surprise holiday present for computer users as early as Monday with the announcement of a 750MHz Pentium III and perhaps even an 800MHz version. Intel is expected to announce on Monday its fastest-yet Pentium III, a 750MHz processor, sources said. An 800MHz Pentium III chip is also expected to be introduced Monday, sources said. The moves would mark an acceleration in Intel's Pentium III rollout schedule, a nod to increasing pressure from rival chip maker Advanced Micro Devices. If Intel announces the 800MHz Pentium III Monday, it will jump one step ahead of AMD in the speed wars. AMD is currently producing a 750MHz Athlon chip, announced 29 November. Intel's top processor clocks in at 733MHz. This one-upmanship should benefit customers in two ways. First, customers will gain access to faster chips more quickly. The 750MHz Pentium III was originally expected in late January, the 800MHz in March. Second, as the new chips come out, existing chips will be reduced in price. Intel on Monday, for example, cut prices on its high-end Pentium III chips between two percent and seven percent. While Intel's 750MHz Pentium III should be announced next week, it's not clear whether PCs utilising it will be available before Christmas. Sources say there is only a small supply of 750MHz Pentium IIIs available, so it's unclear if PC makers will have enough to ship systems before the holiday. PC makers report, however, that a shortage of Intel 700MHz and 733MHz Pentium III chips has eased over the past two weeks. Those chips are available in greater supply, they said. Intel's 750MHz Pentium III, with a 100MHz front side bus, will likely be available by the end of the year. It is not clear yet when the 800MHz will be available. The 800MHz chip, however, will likely be made available with both a 100MHz and 133MHz bus, sources said. The system bus provides a data pipeline between the processor and system components such as memory. AMD, for its part, plans to announce an 800MHz Athlon chip in the first quarter. Intel officials declined to comment for this story. What do you think? Tell the Mailroom. And read what others have said.