Intel said it has produced chips with the 65-nanometer manufacturing process and will start to mass-manufacture chips on the process in 2005, a strong sign the company will continue to keep pace with Moore’s Law.

Reducing the size of the chip improves performance, reduces costs, and can potentially cut energy consumption. The 65-nanometer chips will contain strained silicon and a low-k (low capacitance) dielectric layer, which, in addition to reducing power consumption, increases speed.