Intel have announced a new technology allowing them to reduce the size of their transistors by up to 30%. Industry analysts had been forecasting a major technological barrier for Intel in the not too distant future, but Intel's announcement appears to smash straight through it.
Intel have apparently made "a fully functional 70 megabit memory chip with transistor switches measuring just 35 nanometers" - a 30% size reduction on existing devices. To put this into context, Intel's line of desktop chips, like Pentium 4, are on a 90 to 180 nanometer base.
Reducing the size allows Intel to fit more transistors onto chips, allowing them to build A) more powerful chips (CPUs) B) bigger memory chips. The process could also allow Intel to take back the 'upper hand' in the chip industry from AMD, who have enjoyed great successes in recent months with their new line of chips.
The announcement could also keep "Moore's Law" valid for many more years to come. The law, created by Intel founder Gordon Moore in the 60s, predicted that the number of transistors on chips would double every two years.