There's full details over at EETimes, but the short version is that this is the first demonstration of the next-next-generation of chip fabrication.

Intel is just beginning to move its processors to a 65nm process. The new Extreme Edition 955 chip and the Yonah mobile dual core parts are 65nm. The process means that chips can be smaller, more complex, and generate less heat.

By eventually transitioning to 45nm, Intel will get more of the same. The end of 2007 will see the introduction of the first mass market 45nm chips. In the meantime, we're looking at Conroe as the next-generation desktop chip, produced on the 65nm process.

The new 45nm processor boasts a 30% reduction in power, 20% increase in switching speed and allows for double the transistor count in the same space. The process includes low-k dialectrics, like ATI's latest graphics parts.