In the world of CPUs, die shrinks are usually precursors to a better all around chip, whether that means it runs cooler, overclocks higher, or races faster. Intel, AMD, and IBM are constantly at work trying to hit that next milestone, but what about consumer gadgets?

Shrunken dies are particularly important for portable electronics and handheld gadgets, and Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chip makers, says its on the ball. The company announced plans to start using 28nm technology in its fabrication plants by 2010.

"Product differentiation, faster time-to-market and investment optimization are the three most important values TSMC delivers to our customers," said Jason Chen, TSMC's VP. "In support of these values, we are developing this comprehensive 28nm technology family so that it offers choices, depending on the customer applications and performance requirements."

According to TSMC, its upcoming 28nm chips will run 50 percent faster while consuming anywhere from 30 to 50 percent less power than current generation 40nm parts. The main target for these new chips will be the cellular industry, but both Nvidia and Texas Instruments also have a close relationship with TSMC. If TSMC's claims hold true, that could be good news for Nvidia and the future of its graphics cards.

Image Credit: Reuters Richard Chung

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