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Moore's Law

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Business and Economics Reporting

Definition

Moore's Law is the observation that the number of transistors on a microchip doubles approximately every two years, leading to an exponential increase in computing power and a decrease in relative cost. This principle has driven technological advancements, shaping the growth of the semiconductor industry and impacting various sectors by enabling faster and more efficient processing capabilities.

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5 Must Know Facts For Your Next Test

  1. Moore's Law was first articulated by Gordon Moore, co-founder of Intel, in 1965, predicting that the number of transistors on a chip would continue to double every two years.
  2. This doubling leads to a significant increase in processing power while simultaneously reducing costs, which has propelled the development of increasingly complex technologies.
  3. While Moore's Law has held true for several decades, there are emerging concerns about its sustainability due to physical limitations in semiconductor manufacturing as transistors approach atomic scales.
  4. The implications of Moore's Law extend beyond computing power; it has influenced advancements in artificial intelligence, data storage, and telecommunications.
  5. As computing devices become more powerful and accessible due to Moore's Law, this trend fosters innovation across various industries, transforming how businesses operate and communicate.

Review Questions

  • How does Moore's Law impact technological innovation in various industries?
    • Moore's Law drives technological innovation by increasing computing power while lowering costs, enabling industries to adopt advanced technologies at a faster rate. This exponential growth in processing capability allows for developments in fields such as artificial intelligence, data analytics, and communications. As computing devices become more capable and affordable, businesses can leverage these advancements to enhance efficiency and create new products or services.
  • Evaluate the potential limitations of Moore's Law as transistors approach atomic sizes.
    • As transistors continue to shrink towards atomic sizes, physical limitations may hinder the sustained growth predicted by Moore's Law. Challenges such as heat dissipation, quantum effects, and manufacturing complexities can affect performance and reliability. These limitations could slow down advancements in computing power, prompting researchers to explore alternative materials and architectures that might extend the benefits of Moore's Law into new realms.
  • Synthesize how Moore's Law relates to the broader economic impacts of technological progress in the digital age.
    • Moore's Law encapsulates a key driver of economic change in the digital age by facilitating rapid advancements in technology that lead to increased productivity and innovation. The law contributes to cost reductions in computing, which democratizes access to technology across sectors, fostering entrepreneurship and new business models. Additionally, as computing becomes more integrated into daily life and business operations, the ripple effects can be seen in job creation, shifts in labor markets, and overall economic growth spurred by technological adoption.
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