Intel Corp. is pushing up the release of a 2.8GHz Pentium 4 to this summer in hopes of boosting sagging sales of its flagship PC processor, sources close to the company say

In addition to raising the bar for its fastest chip from 2.53GHz to 2.8GHz, the Santa Clara, Calif., company also is considering additional price cuts this quarter in a bid to reduce its rising supply of unsold Pentium processors, sources say. Weaker than expected PC sales during the second quarter have left Intel with an oversupply of chips, a troubling situation that pushes up the chipmaker's operating costs while it struggles with a decline in overall sales. Intel first acknowledged disappointing sales last month when it surprised Wall Street analysts by issuing a lower-than-expected earnings forecast for the quarter, a move that spurred a sell-off of stock that sent the company's shares down about 20 percent. In a bid to boost the attractiveness of its leading brand, Intel moved up the launch of its 2.8GHz Pentium 4 from the fourth quarter to this summer, sources said. The chip, which will be released in the coming weeks, will initially be offered at $637, with the price of its current speed king, a 2.53GHz chip, falling from $637 to $433.