Chipmaking Team Builds Next-Generation Prototype

Updated from 2:52 p.m. EDT

A coalition of chipmakers have produced successful prototypes of next-generation chips, marking a milestone for an emerging business model as well as for technology.

The four companies -- IBM(IBM Quote), Chartered Semiconductor(CHRT Quote), Samsung and Infineon(IFX Quote) -- said Tuesday that they have established a process for manufacturing chips with 45-nanometer circuitry, two generations ahead of the current standard.

By making chips with smaller circuits, semiconductor makers can pack more transistors on each piece of silicon, resulting in greater performance and functionality. According to the announcement, the first working circuits in 45-nanometer are targeted at communications products, where performance and power consumption are critical. ...