ARM has announced the ARM Cortex-MO+ which the British chip designer boasts is the world's most energy efficient microprocessor and would help usher in wirelessly connected devices in the so-called "Internet of Things".

The Cortex-MO+ is a 32 bit processor chip which uses about one-third of the energy used by existing 8 or 16 bit processors. The new chip is a microcontroller unit that is designed to control or monitor other devices like interactive fridges, car engine systems, smart lighting and medical monitoring equipment. ARM believes that as more devices connect with each other and with the Internet, they would require microprocessors that require low power consumption but still perform well.

"The Internet of Things will change the world as we know it, improving energy efficiency, safety and convenience," said Tom R. Halfhill, a senior analyst with The Linley Group and senior editor of Microprocessor Report.

"Ubiquitous network connectivity is useful for almost everything - from adaptive room lighting and online video gaming to smart sensors and motor control. But it requires extremely low-cost, low-power processors that still can deliver good performance. The ARM Cortex-M0+ processor brings 32-bit horsepower to flyweight chips, and it will be suitable for a broad range of industrial and consumer applications."

The Cortex-MO+ offers faster communication and reduced power consumption when accessing flash memory. The software remains backwards compatible with other devices that use Cortex-M processors. The new Cortex-MO+ microprocessors can be used in battery-operated sensors and wireless sensors that analyze the performance of domestic and industrial buildings.

ARM has existing licensing deals with Freescale Semiconductor and NXP Semiconductors which will manufacture the chips using ARM's design. Although ARM is better known as the designer of processors used in Apple's iPhone and other smartphones, microcontrollers is a growing market for the company. Last year there were 1 billion chips manufactured based on ARM blueprints shipped in the fourth quarter alone. ARM receives about 1-2 percent royalties on every chip manufactured which given the amount adds up to quite a lot of revenue.