IBM Corp is gearing up to start producing chips using its silicon-on-insulator (SOI) process, which increases chip speeds and reduces power consumption. An IBM spokesperson confirmed rumors that IBM would start using the technology in volume production next year, but wouldn’t give details about the exact timeframe.

SOI process technology involves placing a thin layer of silicon on top of an insulator such as silicon oxide or glass. Transistors are then built on the thin SOI layer, reducing the capacitance and increasing the speed of the switch. SOI devices are not only faster, they also use less power. The chips are likely to be initially used in mobile phone chipsets, network processors and other communications components.