Reducing micron sizes

[Szech]

I know that micron size reductions yield higher speeds, but why is this? Is it because you can clock the CPU higher without creating as much heat?
Also, since reductions in size allow higher speeds, what is the limiting factor on creating, say a 0.01 micron CPU? Is it because manufacturing methods prohibit it?

[rock19]

I believe the smaller Micron size allows more transistors.

Travis

[Target]

Smaller die size allows for more transistors per area, lower voltage, and less heat. All contribute to a faster processor.

Currently manufacturing methods prohibit sizes smaller than say .18, but if you check out the main Sysopt page, they have a news article about a new process IBM is working on that will shatter the current size barriers.

[TidalWave]

Besides the technology, when the die-size becomes too small, the electronic currents through the chip have too much influence on each other and cause unwanted side effects like induction and capacitive distortion. That make the CPU crash.