Intel to produce 32nm chips

One nanometer is equivalent to a billionth of a meter.

The Santa Clara, California, company said in a statement that it would be ready to produce the 32nm "more energy-efficient, denser and higher performing transistors" in the fourth quarter of 2009.

"Intel's manufacturing process has the highest transistor performance and the highest transistor density of any reported 32nm technology in the industry," the company said.

Intel's smallest current chip is 45 nanometers.

The new 32nm chips can be used in desktop and laptop computers and servers.

Intel said it would further release details about the new 32nm process technology at the International Electron Devices Meeting next week in San Francisco.