This chip is built with 90-nanometer process technology, compared to the 130-nanometer used for the Sparc IV. The 90-nanometer manufacturing processes makes it possible for chipmakers to put more transistors into a smaller space, which improves chip performance and power needs.

"This is a new chip, not a speed bump," said Bob McGaughey, vice president of product development at Sun.

Sun said it also improved performance of the 1.5-GHz, dual core chip by integrating 2MB of Level 2 cache into it. It also includes 32MB of Level 3 cache on the chip board, which is a new feature.

Although UltraSparc III and IV customers can upgrade their current hardware, Sun also introduced a new server line built around the new chip. The lineup starts with the V490, a four-processor system; the V890, which can offer up to eight processors; the E2900 and E4900, both of which are 12-way systems but offer different feature sets; and the E6900, which can support as many as 24 processors.

Pricing ranges from US$30,995 to $180,000 for the new systems.