Professor Michelle Simmons and her team from the Centre for Quantum Computer Technology modified a scanning probe microscope to lay down a string of individual phosphorus atoms, then encased them in silicone - creating the world's smallest wire.
She spoke about the technology at a research function in Canberra this week.
According to Prof Simmons, this new technique of "atomic-scale fabrication" significantly lowers the size limit of the connections possible within integrated circuits, helping to perpetuate the famous "Moore's law".
First observed by Intel co-founder Gordon E Moore, Moore's Law states that the number of transistors on a computer chip should double every 18 months.
Despite numerous predictions of its demise over the years, some by Moore himself, Moore's Law has proved to be correct for the past 30 years.
Recently, experts had been predicting that the semi-conductor industry was reaching the lower size limit of circuits that could be produced with current technology.
Prof Simmons's new technique shows that electronic components can be made all the way down to the atomic level, allowing Moore's Law to overcome yet another obstacle.
She has already attracted the interest of industry heavyweights like Intel, AMD and IBM, with IBM beginning to model the next generation of transistors on her new techniques.
