• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechIBM

Here’s why IBM’s new computer chip matters

By
Alex Fitzpatrick
Alex Fitzpatrick
Down Arrow Button Icon
By
Alex Fitzpatrick
Alex Fitzpatrick
Down Arrow Button Icon
July 9, 2015, 12:42 PM ET

IBM announced Thursday that it, along with a group of partners, has made a working version of a computer chip roughly four times more powerful than today’s top-of-the-line hardware. Here’s what that means in plain English.

What makes IBM’s new chip special?

The new chips are among the first to be made with 7 nanometer transistors, an advancement made possible by using a silicon-germanium mixture instead of 100% silicon. The benefit here? As transistors get smaller, you can pack more of them onto a single chip, greatly improving chips’ performance. Today’s best chips have 14 nanometer transistors, while the next generation is expected to whittle that size down to 10nm.

Basically, smaller transistors = faster chips, and that’s a good thing.

OK, so when will this new chip make my computer faster?

We’re still a long way from putting 7nm chips in our everyday computers—we don’t even have the 10nm variety yet. IBM’s new chips were made specifically to prove the jump to 7nm is possible, using a complex manufacturing process that won’t be easy to scale up. But by establishing that 7nm is doable, it clears a mental roadblock to getting commercial-grade chips to that point. Now it’s up to chip manufactures like Intel to figure out if it’s possible to make 7nm chips in a commercially viable manner.

Do we actually need faster computers?

Yes, definitely! Computer chips have for decades been governed by something called Moore’s Law. Moore’s Law states the number of transistors per square inch on an integrated circuit should double every two years, but it basically means “stuff gets faster.” Because the boost in chip performance has been fairly predictable, computer manufacturers and other innovators are able to plan in advance for the arrival of faster and more efficient machines.

In a broader sense, faster computers have enabled breakthroughs unthinkable to previous generations—mapping the human genome, for example.

However, some observers are beginning to doubt Moore’s Law as we know it can continue to hold true much longer—processor design is starting to bump up against some pretty firm rules of atomic physics. What IBM’s new chip proves is that Moore’s Law should hold true for at least a little while longer, adding a little more certainly to computing’s future.

Subscribe to Data Sheet, Fortune’s daily newsletter on the business of technology.

About the Author
By Alex Fitzpatrick
See full bioRight Arrow Button Icon

Latest in Tech

robots
InnovationRobots
‘The question is really just how long it will take’: Over 2,000 gather at Humanoids Summit to meet the robots who may take their jobs someday
By Matt O'Brien and The Associated PressDecember 12, 2025
7 hours ago
Man about to go into police vehicle
CryptoCryptocurrency
Judge tells notorious crypto scammer ‘you have been bitten by the crypto bug’ in handing down 15 year sentence 
By Carlos GarciaDecember 12, 2025
8 hours ago
three men in suits, one gesturing
AIBrainstorm AI
The fastest athletes in the world can botch a baton pass if trust isn’t there—and the same is true of AI, Blackbaud exec says
By Amanda GerutDecember 12, 2025
9 hours ago
Brainstorm AI panel
AIBrainstorm AI
Creative workers won’t be replaced by AI—but their roles will change to become ‘directors’ managing AI agents, executives say
By Beatrice NolanDecember 12, 2025
9 hours ago
Fei-Fei Li, the "Godmother of AI," says she values AI skills more than college degrees when hiring software engineers for her tech startup.
AITech
‘Godmother of AI’ says degrees are less important in hiring than how quickly you can ‘superpower yourself’ with new tools
By Nino PaoliDecember 12, 2025
11 hours ago
C-SuiteFortune 500 Power Moves
Fortune 500 Power Moves: Which executives gained and lost power this week
By Fortune EditorsDecember 12, 2025
12 hours ago

Most Popular

placeholder alt text
Economy
Tariffs are taxes and they were used to finance the federal government until the 1913 income tax. A top economist breaks it down
By Kent JonesDecember 12, 2025
17 hours ago
placeholder alt text
Success
At 18, doctors gave him three hours to live. He played video games from his hospital bed—and now, he’s built a $10 million-a-year video game studio
By Preston ForeDecember 10, 2025
3 days ago
placeholder alt text
Success
Palantir cofounder calls elite college undergrads a ‘loser generation’ as data reveals rise in students seeking support for disabilities, like ADHD
By Preston ForeDecember 11, 2025
2 days ago
placeholder alt text
Success
Apple cofounder Ronald Wayne sold his 10% stake for $800 in 1976—today it’d be worth up to $400 billion
By Preston ForeDecember 12, 2025
13 hours ago
placeholder alt text
Success
40% of Stanford undergrads receive disability accommodations—but it’s become a college-wide phenomenon as Gen Z try to succeed in the current climate
By Preston ForeDecember 12, 2025
13 hours ago
placeholder alt text
Arts & Entertainment
'We're not just going to want to be fed AI slop for 16 hours a day': Analyst sees Disney/OpenAI deal as a dividing line in entertainment history
By Nick LichtenbergDecember 11, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.