The upcoming line of Intel Atom processors, formerly announced just a couple weeks ago and making up the brains behind the new Diamondville platform, could start with prices as low as $29 according to a report at Digitimes.  The piece also mentions Core 2-based Centrino processors at 2.16 GHz for $107 or so.

In order to defend its entry-level notebook market, Intel is planning to launch two 65nm Merom-based processors for its Centrino 2 platform (Montevina), according to sources at motherboard makers.

The CPUs include the Celeron 585 with a core frequency of 2.16GHz priced at US$107 in thousand-unit tray quantities, and Celeron 575 at 2GHz and US$86. Both will support 667MHz FSB and feature 1MB L2 cache and a TDP of 31W.

In additional news, Intel has also set the price for its Atom N270 notebook CPU (Diamondville) which forms part of the company’s Basic Mobile Platform at US$44, the sources revealed.