Texas Instruments has paved the way for new mobile phones to become smaller and cheaper with the announcement of a new chip design that will incorporate all the major functions of a mobile phone on a single chip.

The phone-on-a-chip solution should also make the phones more reliable as there is less components to go wrong.

At present, the components of a mobile phone include lots of different chips that control functions like managing power, sending and receiving radio frequencies, and overseeing the phone's basic computing functions.

"By incorporating TI´s DRP technology into a single chip, future Nokia mobile phones will provide the ideal mix of cool features and cost-effectiveness, making them more attractive to the mass marketplace." said Juha Pinomaa, Vice President, Entry Business Line, Nokia.

Nokia, has also announced that it will be working with Texas Instruments to install the new chip in a range of new phones to surface later in the year.