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Okay, so the asterisks on the "Ivy Bridge" and "dual cores" aren't necessary. But they sure are necessary on the 7 W bit.
Basically, Intel has had a 17 W bin of Ivy Bridge dual core chips out for quite a while. They're used in high priced, low performance laptops such as Ultrabooks. Actually, they might just be used in Ultrabooks, as the market for high price, low performance devices that are far less portable than tablets isn't terribly large. Oh, also the Razer Edge, but that just repeats my point about "not terribly large" markets.
But if a bunch of chips can keep inside of a 17 W TDP, then you probably get a decent number of them that can stay inside of 13 W at further reduced clock speeds and voltages. And there might even be a market of people willing to pay extra for less performance so that they can get a reduced power chip that would have great CPU performance for a tablet except that it runs way too hot for a tablet and has broken video drivers. So naturally, Intel binned out some 13 W chips.
And then called them 7 W chips. Apparently it an "SDP" of 7 W. The technical definition of SDP is that whatever numbers the marketing department decides on are correct. It's kind of like the nominal wattage on a power supply in that way. Intel says it stands for "Scenario Design Power".
I think it's more appropriate to call it "Sometimes Design Power". In other words, sometimes the chip will stay below 7 W at load. So if you put it in a tablet that can only handle 7 W of heat dissipation, sometimes it won't overheat and fry. But only sometimes. The real TDP is 13 W, so you'd better have 13 W of cooling capability on hand. Actually, you'd better just not put it in a tablet.
In fairness to Intel, they also have a real 10 W chip, the Pentium 2129Y, which also gets a Sometimes Design Power of 7 W. That's a 1.1 GHz dual core with no hyperthreading and Intel HD Graphics--not HD 4000 or even HD 2500. Oh, and the graphics are also clocked really low, and also lacks working video drivers. But it's a budget chip, so it's $150. The only somewhat budget friendly Core i3 version is $250. Anyone get the idea that Intel doesn't actually want to sell very many of them?
Give it a few months and AMD will launch Kabini dual cores with a real TDP of 9 W, probably clocked somewhere around 1.7 GHz, which would leave them competitive with--and likely faster than-- the Pentium 2129Y. Also, GCN graphics (probably 1 CU clocked around 500-600 MHz) with video drivers that actually work. If AMD wanted to play the Sometimes Design Power game, they could claim that sometimes the chip only uses 5 W. Or 3 W. Or whatever number they decide on. But AMD's marketing department is definitely aware of numbers smaller than 7. But they'll probably just call it a TDP of 9 W and leave it at that, and point to Temash for lower power consumption.