NXP Semiconductors N.V. (NASDAQ:NXPI) unveiled the world’s smallest 64-bit ARM processor, the QorlQ LS1012A, at the Embedded World 2016 event held in Nuremberg, Germany. Designed for Internet of Things (IoT) and related applications, the new processor will enhance the performance of applications that consume a lot of memory and battery power.

This property will be utilized in every day household items that are connected to the Internet, such as TVs and refrigerators. The 64-bit ARMv8 processor draws very little power, estimated at 1 watt, and occupies only 9.6mm square space on a device’s chipboard. It comes with built-in security features and can accelerate network data packets.

The chip was specifically designed for “object-based storage”— a new storage solution. This technology connects a smart hard disk drive directly to a data center’s Ethernet network. In order to be placed directly in a hard disk’s circuit board, a chipset needs to be small, and LS1012A fits the bill. The overall system level costs will also remain low, as the chipset’s innovative packaging allows it be fixed in even low-cost circuit boards.

“The groundbreaking combination of low power, tiny footprint and networking-grade performance of NXP’s LS1012 processor is ideal for consumer, networking and Internet of Things applications alike,” said NXP Digital Networking senior vice president and general manager, Tareq Bustami, in a statement. Subsequently, the chipset can be incorporated in a wide array of applications and devices, such as entertainment systems, mobile hard disk drives, mobile camera storages, rechargeable devices, and various IoT gateways.

The semi-conductor company is among Apple’s chief chipset suppliers. Its stock has slumped 16% since the start of this year. However, in its 4QFY2015 earnings call, NXP shocked investors by surpassing Street estimates for both revenue and earnings per share (EPS).

The strong figures were reflected in part due to the company’s expansion in automotive applications. So, it is no surprise that the chipmaker is diversifying offerings by penetrating the IoT segment. According to the forecast by the International Data Corporation (IDC), the IoT market would hit the $1.7 trillion mark by 2020. Chips such as the LS1012A from NXP would help both the company and the industry.

Interestingly, NXP is not part of the Open Connectivity Foundation (OCF) formed by tech giants, to develop standardized IoT connectivity tools. The foundation is led by Microsoft Corporation and a few chipmakers. NXP might want to elaborate on how its chip can help synchronize IoTs developed by different manufacturers. Orders for the LS1012A processor have already begun, and the chipset is expected to be shipped by April 2016.

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