Intel confirmed yesterday that the new Atom N280 processor is shipping to PC makers. The chip is set to boost netbooks significantly in the performance and graphics departments with most Atom-powered new machines likely to use it.

The N280 has a slight speed improvement over its predecessor, the N270, running at 1.66GHz compared to the previous 1.6GHz, and also has a faster front-side bus, running at 667MHz.

The graphics update is the most impressive enhancement though, with the GN40 chipset adding better support for 720p high-definition videos than its predecessor’s Intel 945GSE chipset. This will allow the N280 chip to better handle streaming video, according to Intel spokesman Bill Calder.

Intel hasn’t disclosed the pricing of the chip but it is already in the $399 ASUS Eee PC 1000HE that was made available for preorder earlier this month.