Sun announced a server chip that it claims will deliver more performance while requiring less electricity than competing microprocessors. The UltraSparc T1 processor, code-named Niagara, has eight computing engines on a single chip, with each core capable of handling up to four tasks at once. The UltraSparc T1 chips will be used first in a line of Sun Fire servers that are expected to be available before the end of 2005. The new chip uses about 70 watts of power on average, significantly less than the 150 watts to 200 watts required by server chips from Intel or IBM.