After the tech bubble burst, and now with the economic downturn, things look pretty grim for Silicon Valley businesses. Tessera Technologies, however, is surging ahead with their camera that is smaller and cheaper than anything out there.

The OptiML wafer-level camera uses a nanotechnology scale that measures distances as small as a human hair. The camera itself is 2.3 mm x 2.3 mm, which for those of you without a ruler is smaller than the tip of your pinky finger.

The main application for this tiny camera is cell phones of course, but Tessera's ability to manufacture the technology at a fraction of the price of what is currently available opens the door  to some pretty futuristic stuff. Like, how about a doll that can recognize a child's face? Sounds like a Twilight Zone episode.  "My name is Talky Tina and I'm going to kill you."

I bet if Tessera and the Graphene people team up, they'd come up with some wicked cool stuff... like maybe a tee-shirt that takes pictures and then displays them instantly.

Come on technology! Wow us!

(Images from Tessera Inc.)