IBM has started production of Cell microprocessors using a new fabrication process, which effectively cuts down the cost of the chips. "The company has begun producing a new, 65nm version of the Cell Broadband Engine at IBM"s state-of-the-art East Fishkill, New York microchip production facility," a statement by IBM reads.
Previously IBM and Sony produced Cell processor, which is currently used only inside IBM"s BladeCenter servers, Sony"s PlayStation 3 game console and some application-specific products, using 90nm process technology. According to analysts from iSupply market tracker, the cost of the chip was as high as $89, making it the third most expensive component of PlayStation 3 game console. The shrink of the fabrication node to 65nm will allow IBM and Sony to cut down the chip cost to $60 or below.