The research team at Swansea University's Electronics Systems Design Centre were awarded the funding through the Department of Trade and Investment's (DTI) technology transfer competition. They will carry out the project in partnership with Zetex and X-Fab - the two largest semiconductors companies in the UK.

Dr Petar Igic, director of the Swansea Centre, says that effective energy management in volume chip applications - in areas as diverse as PC power supplies, motor drives for domestic white goods, mobile telecommunications, automotive and aerospace - could deliver step change reductions in energy wastage.

It is estimated that less than 25% of the world's electricity is efficiently managed and effective power management through smart chip technology holds the key to over $400bn annual savings in electrical energy.

"The technology has the capacity to make a significant impact both on next generation industrial competitiveness and on sustainability issues in the field of engineering," explains Dr Igic.

"The commercial potential is massive. For example the production of a single chip motor drive with efficient speed control used in white goods such as washing machines, would on its own save 20% of current energy usage per house."