Dell is planning to expand its use of AMD chips to include desktop PCs, according to an industry analyst at Citigroup. 

Glen Yeung told Reuters that Asian component manufacturers had confirmed that Dell is looking to use AMD chips. 

Dell announced in May that it would start using AMD processors for its servers, ending an exclusive deal with Intel that had lasted 22 years. 

Yeung said that the AMD-based Dell PCs are expected in September.

The Dell deal could affect Intel's 80 per cent market share, which AMD has slowly been eating into.

However, Intel has begun to release its latest range of Core 2 Duo chips that could see the chip giant cutting the price of its existing processor ranges and starting a price war.