Chapter 5: Moore’s Law – Cheap and Fast Computing
Moore’s Law: law stating that chip performance per dollar doubles every eighteen months and it is closely
related to faster and cheaper computing. More powerful chips are being made at a cheaper price. This
law applies to chips, or to processors and chip-based storage. (this law just applies to chips)
However, the exponential performance curve is visible for other technology components such as optical
fiber, data storage, etc.
• A microprocessor is a part of a computer which executes the instruction of a computer program,
allowing it to run a web browser, word processor, or virus.
• This law means that next generation chips should be twice as fast in about eighteen months, while
costing the same as today’s models.
Random-access memory (RAM) – is the memory of a chip and this memory is volatile. Therefore, RAM is
more suitable for temporary storage with a fast execution.
- Volatile memory means that all information stored in the memory is lost when the power goes
off. Information can be saved as “non-volatile memory”, which is a more permanent storage
medium such as “hard disc”.
- In mobile phones, cameras etc. flash memory is used, so called flash RAM, which is non-volatile
chip-based memory that is little slower than the conventional RAM.
- The advantage of chips: they are solid state electronics, meaning that they do not consist of
moving parts and are, less likely to fail and require less energy. Data can be accessed faster from
flash memory.
- Computer chips are semiconductors, which are substances used inside the computer chips that
are capable of inhibiting the flow of electricity.
The economics paired with Moore’s Law will lead to the opening of new markets. If technology decreases
in price, price elasticity tells us that customers are more willing to buy the technology. Tech products are
highly price elastic, meaning that consumers buy more as they become cheaper.
When looking at computing, 6 waves can be defined.
Wave 1: room-sized computers and only available to big corporations
Wave 2: refrigerator-sized computers, affordable for smaller organizations
Wave 3: PC’s, affordable for most white-collar workers
Wave 4: internet computing
Wave 5: faster and cheaper computers, more mobile phone revolution
Wave 6: Era of pervasive computing, computers are woven into products
Moore’s Law rewrites the boundaries of competition, firms in different markets in direct competition.
If one produces a product with a large chip-based component, the value of these chips inside the product
rapidly decrease. This makes the product cheaper, which can be positive unless you overproduce it
because then the excess inventory will lead to losses due to depreciation.
, The main reason that Moore’s Law works is because semiconductor fabrication facilities can produce
more and more chips per silicon wafer (thin material used to create semiconductor material). By doing
this, electrons travel shorter distances by increasing the speed of a chip.
There are three forces that can slow down the advance of Moore’s Law, namely size, power, and heat.
The smaller the processors, the more tightly packed electrons will heat up a chip. Because of the heat,
chips become so hot that they would melt. That is why the computers need fans. The need to cool modern
data centers requires a lot of energy and money. If electrons pass each other without enough distance,
electrons get pushed out of the path which leads to quantum tunneling.
These problems can be overcome by using multicore microprocessors. These are made by putting two or
more processor cores which need less energy on the same chip. This increases the speed of devices and
decreases the heat and power usage. Main disadvantage is it is hard to rewrite programs made for single
chips in a way that tasks are divided into pieces.
Another solution would be creating a 3D chip which will be faster and less energy consuming. New
materials may extend the Moore’s Law, also new methods for calculating may increase computing
capabilities.
There are two ways in which companies can gain access to potential benefits that Moore’s Law offers:
1. Using supercomputers. These are the fastest in the world. These computers work with massively
parallel processing, which is a computer designed with many microprocessors, working together
to solve problems.
2. Grid computing is a type of computing that uses special software to enable several normal
computers to work together. Lower R&D time creates more time to market, which is important
for both customers and firms. Cluster computing happens when servers are connected through
special software and networking hardware, so that they are more tightly linked, and their
resources can be used collectively.
Multicore chips are chips having several processors in a single chip. Massively parallel supercomputers
have several chips in one computer. Grid and cluster computing use existing computers to work together
on a single task. They all subject to the same limitation which is software must be written to divide existing
problems into smaller pieces.
Server farms are huge amounts of servers that are coordinated to cooperate by using software. These
farms can ensure that everyone gains access to this great computer power by using cloud computing.
With cloud computing, resources (hardware, software) are replaced with services. People can use SaaS
(software as a service), to use online documents such as Google Docs. The success is dependent on the
possibility of splitting tasks, tasks can be solved by the large number of processors.
The downside of Moore’s Law
- The downside of faster and cheaper advancement of technology is that the lifespan of electronics
is short. The consequences of this is a fast-growing amount of discarded electronic waste or e-
waste. It is defined as discarded; obsolete technology also known as electronic waste.
Moore’s Law: law stating that chip performance per dollar doubles every eighteen months and it is closely
related to faster and cheaper computing. More powerful chips are being made at a cheaper price. This
law applies to chips, or to processors and chip-based storage. (this law just applies to chips)
However, the exponential performance curve is visible for other technology components such as optical
fiber, data storage, etc.
• A microprocessor is a part of a computer which executes the instruction of a computer program,
allowing it to run a web browser, word processor, or virus.
• This law means that next generation chips should be twice as fast in about eighteen months, while
costing the same as today’s models.
Random-access memory (RAM) – is the memory of a chip and this memory is volatile. Therefore, RAM is
more suitable for temporary storage with a fast execution.
- Volatile memory means that all information stored in the memory is lost when the power goes
off. Information can be saved as “non-volatile memory”, which is a more permanent storage
medium such as “hard disc”.
- In mobile phones, cameras etc. flash memory is used, so called flash RAM, which is non-volatile
chip-based memory that is little slower than the conventional RAM.
- The advantage of chips: they are solid state electronics, meaning that they do not consist of
moving parts and are, less likely to fail and require less energy. Data can be accessed faster from
flash memory.
- Computer chips are semiconductors, which are substances used inside the computer chips that
are capable of inhibiting the flow of electricity.
The economics paired with Moore’s Law will lead to the opening of new markets. If technology decreases
in price, price elasticity tells us that customers are more willing to buy the technology. Tech products are
highly price elastic, meaning that consumers buy more as they become cheaper.
When looking at computing, 6 waves can be defined.
Wave 1: room-sized computers and only available to big corporations
Wave 2: refrigerator-sized computers, affordable for smaller organizations
Wave 3: PC’s, affordable for most white-collar workers
Wave 4: internet computing
Wave 5: faster and cheaper computers, more mobile phone revolution
Wave 6: Era of pervasive computing, computers are woven into products
Moore’s Law rewrites the boundaries of competition, firms in different markets in direct competition.
If one produces a product with a large chip-based component, the value of these chips inside the product
rapidly decrease. This makes the product cheaper, which can be positive unless you overproduce it
because then the excess inventory will lead to losses due to depreciation.
, The main reason that Moore’s Law works is because semiconductor fabrication facilities can produce
more and more chips per silicon wafer (thin material used to create semiconductor material). By doing
this, electrons travel shorter distances by increasing the speed of a chip.
There are three forces that can slow down the advance of Moore’s Law, namely size, power, and heat.
The smaller the processors, the more tightly packed electrons will heat up a chip. Because of the heat,
chips become so hot that they would melt. That is why the computers need fans. The need to cool modern
data centers requires a lot of energy and money. If electrons pass each other without enough distance,
electrons get pushed out of the path which leads to quantum tunneling.
These problems can be overcome by using multicore microprocessors. These are made by putting two or
more processor cores which need less energy on the same chip. This increases the speed of devices and
decreases the heat and power usage. Main disadvantage is it is hard to rewrite programs made for single
chips in a way that tasks are divided into pieces.
Another solution would be creating a 3D chip which will be faster and less energy consuming. New
materials may extend the Moore’s Law, also new methods for calculating may increase computing
capabilities.
There are two ways in which companies can gain access to potential benefits that Moore’s Law offers:
1. Using supercomputers. These are the fastest in the world. These computers work with massively
parallel processing, which is a computer designed with many microprocessors, working together
to solve problems.
2. Grid computing is a type of computing that uses special software to enable several normal
computers to work together. Lower R&D time creates more time to market, which is important
for both customers and firms. Cluster computing happens when servers are connected through
special software and networking hardware, so that they are more tightly linked, and their
resources can be used collectively.
Multicore chips are chips having several processors in a single chip. Massively parallel supercomputers
have several chips in one computer. Grid and cluster computing use existing computers to work together
on a single task. They all subject to the same limitation which is software must be written to divide existing
problems into smaller pieces.
Server farms are huge amounts of servers that are coordinated to cooperate by using software. These
farms can ensure that everyone gains access to this great computer power by using cloud computing.
With cloud computing, resources (hardware, software) are replaced with services. People can use SaaS
(software as a service), to use online documents such as Google Docs. The success is dependent on the
possibility of splitting tasks, tasks can be solved by the large number of processors.
The downside of Moore’s Law
- The downside of faster and cheaper advancement of technology is that the lifespan of electronics
is short. The consequences of this is a fast-growing amount of discarded electronic waste or e-
waste. It is defined as discarded; obsolete technology also known as electronic waste.
