HP hypes new nanotechnology chip development

NEW YORK (CNNMoney.com) -- Hewlett-Packard researchers announced Tuesday a new advance in its computer chips using nanotechnology, which could significantly improve performance.

The Palo Alto, Calif.-based company said the new technology could be used to create chips that used less energy that would potentially store up to eight times the number of transistors on a normal chip.

The computer maker, which envisions finishing a prototype chip by the end of the year, said the chips are currently used across a number of industries including the automotive and consumer electronic sectors.

Nanotechnology refers to technology that is measured in billionths of a meter.

The research, which applies to a series of chips known as FPGAs, or field programmable gate arrays, is featured in the Jan. 24 issue of Nanotechnology, a publication of the British Institute of Physics.

Shares of Hewlett-Packard (up $0.92 to $42.61, Charts), which competes against such other tech giants as Dell (down $0.02 to $23.71, Charts), finished over 2 percent higher in Friday trade on the New York Stock Exchange.

Attack of the mini-Googles!