http://news.com.com/2100-1006_3-5111...ml?tag=cd_lede

Big quote from article:

The Santa Clara, Calif.-based chipmaker announced Monday that it has made Static Random Access Memory (SRAM) cells, a type of memory, with the 65-nanometer process and will start to mass-manufacture chips on the process in 2005. The nanometer figure refers to the average size of features on chips produced with the process. Most PC microprocessors on the market today are made on the 130-nanometer process, and manufacturers are just starting to produce 90-nanometer chips now. (A nanometer is a billionth of meter.)

Reducing the size of the chip improves performance, reduces costs and can potentially cut energy consumption. In a nutshell, electrons have a shorter commute in 65-nanometer chips, so performance goes up. The gate length--the distance electrons travel to get from the source to the drain on a transistor and thereby flip the transistor on--drops from 50 nanometers to 35 nanometers in 65-nanometer chips.

"You can get a 40 to 50 percent increase in clock speed with no further improvements," said Mark Bohr, Intel senior fellow and director of process architecture and integration.
This whole article has interesting info in it.