Hyper-threading, developed by Intel, allows a single physical processor to act as two logical processors, improving efficiency by enabling better resource utilization in multithreaded applications. This technology increases performance in systems by sharing CPU resources across multiple threads, with potential performance gains of 10-30% for applications designed to benefit from it. To maximize the advantages of hyper-threading, multithreaded applications must be coded to avoid simultaneous resource requests, and operating system support is crucial for optimal scheduling of threads.