IBM's stock price surged 5.72% in pre-market trading on Thursday following the announcement of a major technological breakthrough in semiconductor manufacturing.
The company unveiled what it claims is the world's first technology capable of producing chips smaller than one nanometer, with a transistor architecture of 0.7 nanometers (7 angstroms). This new "nanostack" design stacks transistors in three dimensions instead of laying them flat, allowing for about 100 billion transistors on a fingernail-sized surface.
According to IBM, this breakthrough delivers up to 50% higher performance or 70% greater energy efficiency compared to its 2-nanometer chips unveiled in 2021. The technology strengthens IBM's position to compete with contract chipmakers TSMC and Intel in the race to build semiconductors for increasingly demanding AI workloads.
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