The announcement comes one month after IBM unveiled a $3 billion investment over the next five years in chip research and development to find a game-changing breakthrough that can help revive its slumping hardware unit.
Unlike most chips, which operate on pre written paths, IBM's version processes data in realtime and is capable of dealing with ambiguity, the company said. It runs on the energy equivalent of a hearing aid.
Built on Samsung Electro-Mechanics Co Ltd's 28nm process technology, the chip only consumes 70mW of energy.
A product of almost a decade of research, the chip aims to bridge the divide between existing computers and the brain's high cognitive power and low energy use.
"After years of collaboration with IBM, we are now a step closer to building a computer similar to our brain," said Professor Rajit Manohar at Cornell Tech, where the chip was designed.
The chip contains one million programmable neurons and could allow a thermometer to scan and smell chemical signals and deliver a diagnosis, or help a search and rescue robot to identify people in need during a disaster, the company said.
IBM hopes it can integrate multi-sensory processing into mobile devices and says the chip can handle future advances in memory, 3G integration, logic and sensor technologies.