This report reviews a new field of ion beam technology that employs accelerated ions consisting of clusters of a few hundreds to thousands of atoms (Gas Cluster Ion Beam technology, GCIB). Cluster ion-surface collisions have been found to produce low energy bombardment effects at very high density and GCIB processes exhibit unique non-linear effects that are useful for novel surface processing applications. The effects include low energy ion bombardment, lateral sputtering, and low temperature thin film formation. GCIB processing has been successfully applied for shallow junction formation; for high rate etching; for surface smoothing of materials including metals, dielectrics, superconductors and diamond; and for high-k oxide and DLC thin film deposition. Currently, industrial applications of GCIB processes are being conducted by several Japanese companies under the Nanotechnology program called “Advanced Nano-Fabrication Process Technology Using Quantum Beams” of NEDO/METI (New Energy and Industrial Technology Development Organization/the Ministry of economy and Technology Industry). In US, R&D especially for semiconductor applications are under way at Epion Corporation, International SEMATEC and their cooperated associations. Epion is the only company that is developing industrial GCIB equipment and has joined the NEDO/METI project.The review includes recent equipment and process developments. In nano-scale GCIB processes, the effect of cluster size (atoms/cluster) on surface processing, especially damage production, becomes important. In the project, GCIB equipment with cluster size selection system has been developed. Several industrial applications for surface smoothing of magnetic and semiconductor materials by the Japanese government and IC processing by US companies are summarized.