Intel has confirmed that it is facing production problems with its still unreleased Intel Atom chips, prompted by demands that exceed initial expectations. "We are working closely with our customers to meet their needs," said Intel spokesman Bill Calder. "We're just seeing better-than-anticipated demand." he added. The 45nm single core Intel Atom processor is based on an entirely new design, built for low power and designed specifically for ultra low-cost portable devices such as laptops. The official launch of the Atom chips is scheduled for release in June 2008. Mini-laptops powered by them will be available shortly after. More than 10 PC makers have already placed orders with Intel for Atom chips. However, initial reports suggest that Intel will be able to meet only 40% of these orders and expect the short supply of Atom chips to continue until the third quarter of 2008. Most affected by the shortage are companies like: Acer, Dell, MSI and GIGABYTE.