Samsung is working on an 11.6-inch netbook, powered by Intel's N510 Atom CPU and Nvidia's ION chipset.

According to Digitimes, the new netbook should launch later in July, and it seems Intel is not thrilled about it.

There's a price to pay for breaking Intel's netbook restrictions and coming up with a bigger design, and both Samsung and Lenovo have lost preferential pricing for Atom N270 CPUs for launching 12-inch and 11.6-inch netbooks.

More here.