Today, IBM said it will offer a new foundry service that could enable a startup to compete on the same level as Intel. The company says it will produce 45-nanometer silicon-on-insulator chips, that will reduce the power consumption. IBM has combined two important manufacturing technologies to make this offering unique. One of it consists of the process node, which offers better power efficiency and better economies of scale. The other technology, SOI (silicon-on-insulator), is more expensive that the CMOS process.

However, IBM thinks it’s worth paying more for SOI, and that’s because a processor gains more performance, with certain types of power advantages provided by SOI, some that can help make devices smarter and more energy efficient. The company has signed a partnership with ARM, the design firm behind many of the chips that act as processors for cell phones, including the iPhone, in order to offer some of its IP libraries as part of this foundry offering. The foundry service will provide service for companies that build mobile phones applications processors, embedded chips for networking equipment and gaming chips. However, AMD also has the ability to make 45-nanometer SOI chips, which means that there will most probably be a competition between the two technology firms.

One of the other giant firms in the IT division, Intel, has resisted SOI technology for years. IBM and its partners now make it possible for other firms to keep up with Intel without worrying about manufacturing R&D. The company told the press in a statement: “IBM was the first company to begin commercially shipping SOI technology in its server products during the 1990s.” Furthermore, the company added that its SOI technology is now used by all the major gaming hardware providers. IBM currently makes chips for Sony and Nintendo, among others.