The leading developers of the technology used in every major brand of projector have unveiled a pioneering new chip that will allow projectors to be shrunk to even smaller sizes.

Texas Instruments – the company that makes the crucial digital light processing, or DLP, chips – launched a new DLP Pico chip at last week's IFA Berlin consumer electronics show.

The tiny chip, which has been called the nHD chip, is only around the size of a raisin but has proven extremely effective in projecting images with resolutions of up 640x360 pixels. The size of the chip is likely to make pico projectors a much more commonplace feature in gadgets such as cameras, mobile phones and portable games consoles.

Texas Instruments says the new model gives a much-improved contrast ratio of 1000:1 for much darker black tones and a richer colour spectrum. It will also significantly lower the power consumption of devices using it, compared to older projection technology.

Customers that already use the Pico DLP technology include leading brands such as Dell and Samsung. The digital cinema market remains the greatest user of the equipment, with DLP chips used in more than 19,000 cinema screens in the UK – 10,000 of those able to screen 3D films and 117 IMAX enabled.