We give an overview of the QPACE project, which is pursuing the development of a massively parallel, scalable supercomputer for LQCD. The machine is a three-dimensional torus of identical processing nodes, based on the PowerXCell 8i processor. The nodes are connected by an FPGA-based, application-optimized network processor attached to the PowerXCell 8i processor. We present a performance analysis of lattice QCD codes on QPACE and corresponding hardware benchmarks.
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