Intel Corp. couldn’t have chosen a better name for the latest family of low power microprocessors - “Atom”, with two versions coming up sometime this quarter, namely what was previously known as Silverthorne and Diamondville.

Intel’s smallest microprocessors are especially designed for mobile Internet devices (MIDs) – Silverthorne, and a new class of low-cost Internet-centric computers named “netbooks” that will become available later this year – Diamondsville. The low cost computers will have an estimated price of $250.

“This is our smallest processor built with the world’s smallest transistors,” said Intel Executive Vice President and Chief Sales and Marketing Officer Sean Maloney in a statement. The new chips will be based on Intel’s 45nm cutting-edge technology, will have a thermal design power (TDP) specification in 0.6-2.5 range and scale to 1.8 GHz, depending on the customer’s needs.

“This small wonder is a fundamental new shift in design, small yet powerful enough to enable a big Internet experience on these new devices,” Maloney also said. “We believe it will unleash new innovation across the industry,” he added.

The California-based company strongly believes that the Intel Atom processors have great revenue potential in consumer electronic devices, embedded applications and thin clients.

Intel also announced the Intel Centrino Atom processor technology brand for MIDs, formerly known as “Menlow”. This Intel Atom processor - a low-power companion chip with integrated graphics – will support Wi-Fi, Bluetooth, WiMax, GPS and will have a lighter, thinner design.

The Intel Atom processor is designed for small, low-power devices, while maintaining the Intel Core Duo 2 instruction set compatibility consumers are accustomed to, measures less than 25 mm², making it the smallest and lowest power processor yet.

“Soon, you will see the Intel Centrino Atom brand on handheld devices that can bring an amazing internet experience in a device that fits in your pocket. You’ll see the Intel Atom processor powering a growing category of devices aimed at delivering affordable, Internet-centric uses”, wrote Brian Fravel Intel Director of Marketing, Brand Strategy, on the company’s blog.