Making processors for mobile gadgets is mostly an afterthought. Hone a chip from a desktop PC, tweak it to suck less power and vent less heat, and stick it in a laptop. Not so with Intel’s Atom. It’s Intel’s smallest-ever microprocessor, a 24-square-millimeter chip crammed with 47 million data-carrying transistors, and it’s paving the way for the next era of affordable, power-saving gadgets.

While the MacBook Air showed how slim a laptop could be, the Voodoo Envy ($2,100; voodoopc.com) demonstrates how much can fit in that space. Using the same compact CPU as the Air, the carbon-fiber-clad Envy measures just 0.7 inch thick—a tad thinner than the Mac at its thickest point. And it packs in more features, including a slot for high-speed cellular data cards, two USB ports, and an HDMI port for attaching to a high-def TV.

Intel rolled out its new low-cost laptop model yesterday, and the machines will boast bigger, 9-inch screens, 30 GB of storage and integrated Web cameras. These new Classmate PCs, which will go on sale in April for somewhere between $300 and $500, are the second iteration of Intel's answer to the One Laptop Per Child organization's cheap laptop, the XO.