AMD has reportedly developed a smaller version of the processor found inside the Xbox One. A smaller chip would be cheaper to build (eventually) and create less heat which could ultimately translate into a slim version of Microsoft’s latest console according to a report from Eurogamer’s Richard Leadbetter.

The main processing chip inside the Xbox One today is built on a 28-nanometer manufacturing process. The new chip would be fabricated at 20-nanometer, if the rumor is to be believed.

The intel comes from the LinkedIn page of Daniel McConnell, AMD’s senior manager of System on a Chip (SoC) physical design. He mentioned that he successfully planned and executed the first APU for Microsoft’s Xbox One in 28-nanometer technology as well as a cost-reduced derivative in 20-nanometer.

Leadbetter speculates that the objective of the revised processor would be to offer the exact same performance as the current model. This opens the door to a much smaller cooling assembly which in turn could mean a thinner overall chassis. Using fewer materials to build a thinner console also means less packaging – even more savings.

He noted that a 30 percent performance boost from the chip is intriguing but not likely to materialize.

Further supporting the argument is the fact that Microsoft is looking to hire engineers to work on the overall Xbox One design. Of course, 20-nanometer chips are still cost prohibitive at this point and probably will be for a while due to high demand from smartphone manufacturers.