IBM shares rose 2.2% on Thursday after the company unveiled the world’s first 2nm processor that can improve performance by 45% or power efficiency by 75% over 7nm chips on the market.
IBM (IBM) on Thursday announced a breakthrough in chip design and manufacturing, unveiling the world’s first chip with 2 nanometer (nm) nanosheet technology. The fewer nanometers used in microcircuit production technology, the more advanced it is considered.
IBM shares, which are up nearly 18% since the beginning of the year, were up 2.2% on Thursday amid the news.
IBM said its new 2nm chips, created at its research laboratory in Albany, USA, could provide 45% better performance or 75% lower power consumption than the most advanced 7nm chips.
This technology is extremely relevant at the present time, when all technology is becoming “smart”, smartphones are connected to 5G, and the requirements for the performance of personal computers are constantly increasing. The ubiquitous AI technologies also require powerful silicon.
According to a press release from IBM, the new 2nm manufacturing technology will enable:
Solve the pressing problem of extending the longevity of smartphones’ batteries by quadrupling their lifespan, as users only have to charge them every four days.
Reduce energy consumption in data centers, which account for 1% of global energy consumption.
Improve performance and reduce power consumption of your PC.
Accelerate the adoption of artificial intelligence and machine learning technologies, which will contribute to the faster emergence of self-driving cars on the roads.
According to Peter Rudden, director of research at IDC, “This breakthrough in semiconductors proves that IBM continues to be the center of hardware research.”
In a press release, IBM executives recalled that the company was also the first in the world to implement 7nm and 5nm chip technology.
IBM’s new 2nm process could fit 50 billion transistors into a “fingernail-sized chip,” up from the 30 billion that the company announced its 5nm breakthrough in 2017.
State-of-the-art 5nm chips are used in flagship smartphones such as Apple’s iPhone 12 (AAPL).
Market experts applaud IBM’s innovation, but point out that the technology will likely take years to reach the broader market.
IBM’s new technology is emerging at a time when hardware and automakers around the world are facing a semiconductor shortage, which is causing the pace of production to slow down.
IBM is outsourcing chip manufacturing to Samsung Electronics, which uses its technology.
On Thursday, Japan’s Nintendo joined a number of companies hit by semiconductor shortages, saying the chip shortage is affecting the production of its popular Nintendo Switch console.
Global scarcity prompted US President Joe Biden to convene a special industry summit on the issue of scarcity and dependence on chip supply from Asia. The US government is planning $ 50 billion in funding for the semiconductor industry, including helping Intel (INTC) build two new chip factories in Arizona.
Intel’s new CEO said in March that the company would allocate $ 20 billion to build factories.
In the UK, the government intervened in the acquisition of chipmaker Arm by tech giant Nvidia (NVDA), seeing it as a threat to national security.