• 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
Video Poster

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

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • 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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Man in blue suit and red tie.
C-SuiteMeta
Mark Zuckerberg’s AI ambitions back in the spotlight as Meta execs begin ‘moonshot’ mission for $9.5 trillion valuation and massive payouts
By Amanda GerutApril 28, 2026
3 hours ago
Elon Musk arrives at the federal courthouse as opening statements begin in the trial over Elon Musk's lawsuit against OpenAI in Oakland, California, on April 28, 2026.
LawElon Musk
Elon Musk accuses Google co-founder of loving robots as much as people: ‘Larry Page called me a ‘specieist”
By Eva RoytburgApril 28, 2026
6 hours ago
Disneyland implements facial recognition to keep the lines moving, but guests say they didn’t know it was optional
CybersecurityDisney
Disneyland implements facial recognition to keep the lines moving, but guests say they didn’t know it was optional
By Catherina GioinoApril 28, 2026
7 hours ago
Screen displaying stock market index performance in green and red.
NewslettersEye on AI
Bloomberg, the OG of financial data firms, has a potent new AI agent. How it built it holds lessons for other companies
By Jeremy KahnApril 28, 2026
7 hours ago
torsten slok
AIJobs
A 160-year-old paradox explains why AI will create more lawyers and accountants—not fewer, top economist says
By Jake AngeloApril 28, 2026
8 hours ago
levie
AILayoffs
Tech is in turmoil—but the rest of corporate America isn’t. One Silicon Valley CEO knows why
By Nick LichtenbergApril 28, 2026
8 hours ago

Most Popular

Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
2 days ago
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
AI
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
By Sasha RogelbergApril 28, 2026
21 hours ago
The U.S. military may have already used up half of its most expensive missiles, and it could take up to 4 years to rebuild its stockpiles
Politics
The U.S. military may have already used up half of its most expensive missiles, and it could take up to 4 years to rebuild its stockpiles
By Sasha RogelbergApril 24, 2026
4 days ago
OPEC shocker as UAE leaves oil cartel days after negotiating swap lines with Scott Bessent’s Treasury
Energy
OPEC shocker as UAE leaves oil cartel days after negotiating swap lines with Scott Bessent’s Treasury
By Nick LichtenbergApril 28, 2026
14 hours ago
Current price of silver as of Tuesday, April 28, 2026
Personal Finance
Current price of silver as of Tuesday, April 28, 2026
By Joseph HostetlerApril 28, 2026
16 hours ago
Current price of gold as of April 28, 2026
Personal Finance
Current price of gold as of April 28, 2026
By Danny BakstApril 28, 2026
15 hours ago

© 2026 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.