A research team lead by IBM has moved closer to developing a 32nm processor.

The team, which includes Samsung, STMicroelectronics and Toshiba, is ready to begin working with hardware vendors to design the first chips with the 32nm manufacturing process.

This will allow OEMs to begin working on the first generation of chips built from the process. The group expects the first prototypes to arrive in the third quarter of 2008.

IBM claims that the new chips will offer a performance boost of roughly 35 per cent and a 35-50 per cent drop in power consumption over the current 45nm process.

Big Blue credits much of the breakthrough to its use of High-K semiconductor materials, which are less prone to power leakage problems that can occur with traditional manufacturing techniques.

Intel uses High-K materials in the design of its latest 45 and 32nm chips.

"These early High-K/metal gate results demonstrate that by working together we can deliver leading-edge technologies that surpass others in the industry," said Gary Patton, vice president of IBM's semiconductor research and development centre.

"Demonstrating this calibre of result in a practical environment means that, as our collective client base moves to next-generation technology by using the 'gate-first' approach, they will continue to maintain a significant competitive advantage."