On Tuesday, Qualcomm (QCOM  ) introduced its new third-generation 5G mobile chip which is designed to handle multiple 5G network variants.

Qualcomm's newest 5G modem didn't bring the same sort of jump in advancements as its predecessor, but it may be more important for a different reason: its size. The X60 modem is the first to be built with a 5nm process compared to its predecessors' 7nm. This means it can pack higher performance in a smaller space.

The chip utilizes a technique called carrier aggregation: it combines fragmented airwave spectrum in order to allow faster speeds, wider coverage, and boosted capacity.

"Qualcomm's third-generation X60 5G modem-RF system is a big step forward for 5G. Spectrum aggregation across all millimeter wave and sub-6 gigahertz bands will deliver a big performance gain. This took years to get to in LTE." said Geoff Blader, an analyst with technology research firm CCS Insights.

This chip can deliver download speeds of up to 7.5 Gbps, uploads at 3Gbps, and supports "spectrum aggregation across all key 5G bands and combinations." These speeds are even higher than the theoretical capabilities of 5G networks still under construction. The chip is meant to keep up with 5G advancements as they come. Qualcomm estimates that 175 million to 225 million 5G smartphones will be shipped this year and that that number will increase in subsequent years.

"As 5G standalone networks are introduced in 2020, our third-generation 5G modem-RF platform brings extensive spectrum aggregation capabilities and options to fuel the rapid expansion of 5G rollouts while enhancing coverage, power efficiency and performance for mobile devices," said Qualcomm President Cristiano Amon. 5G standalone networks don't rely on parallel 4G networks for any services including voice calls.

Qualcomm, the world's biggest supplier of mobile phone chips, uses outside manufacturers to make their products. While Qualcomm hasn't said who will be manufacturing the X60, Reuters reported that Samsung Electronics Co Ltd and Taiwan Semiconductor Manufacturing Co Ltd (TSM  ) have won the contracts.

Qualcomm says they will be shipping samples to their customers in the first quarter of 2020 but that they won't be seen in phones until early 2021. One customer that industry professionals think will be interested in the chip is Apple (AAPL  ).

The upcoming iPhone 12 is expected to be 5G capable, and Apple has a multi-year agreement with Qualcomm to supply chips. Qualcomm is also pretty well ahead of the curve on 5G chips. However, after Apple purchased Intel's (INTC  ) smartphone modem business, they gained the capability to create their own smaller and and more efficient chips. Qualcomm has shown they don't want that to happen by designing the X60 to be exactly that: small and efficient.

Previously, Apple has rejected Qualcomm's antennas because of their size, but, again, Qualcomm is expected to release an answer to that problem as well with an antenna that "features a more compact design than the previous generation which allows for thinner, sleeker smartphones."