It's an axiom in real estate: when land gets expensive, build up. For 30 years, chip designers have considered whether building integrated circuits with multiple layers might create cheaper, more powerful chips. Previous attempts to build such three-dimensional chips have failed or proved too expensive, but Santa Clara, CA-based startup Matrix Semiconductor plans to bring the first one to market in just a few months. While Matrix's techniques won't likely result in more computing power, they will produce cheaper chips for certain applications, like memory.

Matrix has adapted technology developed for making flat-panel liquid-crystal displays to build chips with multiple layers of circuitry. The company-founded in 1997 by Stanford University electrical engineer Tom Lee, Mike Farmwald, cofounder of chip connection technology company Rambus, and others-starts with a standard silicon chip. It paves the chip with glass, adds a new layer of silicon on top and starts the process over again. Matrix connects the layers by etching holes through the glass and filling them with silicon. So far, the company has built chips with eight layers on top of the base chip, and it believes it can go higher.