Advanced Micro Devices Inc., the second-largest maker of personal-computer processors, is updating its Opteron server processors on Tuesday.

New versions of Opteron will connect with a faster type of memory chip and use a new kind of socket for a computer system board, which in turn allows AMD to use more power-efficient memory chips in computer servers.

The Santa Clara-based company also said the new chip will have built-in support virtualization technology. This allows computers to run multiple operating systems, making them more flexible and helps data-center managers get more use out of them.

The company has faced tough competition from market rival Intel Corp. in the past, however the company has taken a number of steps to defend itself from a barrage of price-cuts and new products.

Last month the company bought graphics-chip maker ATI Technologies for $5.4 billion in a move to help expand its product lines. The company has also improved its relationships with Dell, the worlds largest PC-maker, as well as HP, Sun and IBM, all expecting to ship systems with the new Opteron this quarter.

According to data released from Mercury Research, AMD's market share was able to increase slightly, to 22 percent, with revenue share increasing to 18 percent at Intel's expense.

Intel