Sony Computer Entertainment president Ken Kutaragi revealed today in an interview with Japan's Impress Watch technology site that the PS3's Cell processor will make the switch to a 65nm manufacturing process in 2007. Shipments of the more efficient chip will make it out later that year.
The Cell is in production at IBM's Fishkill and Sony's Nagasaki fabrication facilities. Currently, the chip is being produced using a 90nm process. Switching to a 65nm process will reduce costs, potentially leading to a price reduction of components that use the chip.