AMD and IBM have joined forces to make something Intel announced six months ago: high-k metal gate transistor technology for their jointly developed 45nm process. 
Intel does have the edge with its Halfnium-Oxide based insulator whereas the AMD-IBM combo will continue to use strained silicon technology.
Their 45nm process is highlighted to have a lower current leakage and higher capacitance of transistors, for a lower power usage and improved performance. 
Interestingly it's only planned for 
second generation 45nm and the first generation 32nm technology processes.  Therefore, it seems like AMD's Shanghai core - its first 45nm core, coming next year - will still use traditional manufacturing technologies. 
This means Intel will be 12-18 months ahead 
at least, when it comes to the introduction of its 45nm technology with similar high-k metal gate technology used for its Penryn family of processors later this year.
When will the size reduction end: can we still achieve 25nm and below come 2010 onwards? Your thoughts are always welcome 
in the bit-tech community forums.
    
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