Computational Power (the no. of transistors on a chip) will double every 2 years. Every 2 years there would be a doubling in transistor density and a halfing in computational costs. ### Faulty Assumption Moore implicitly assumed that consumer demand would increase in tandem with production. Ie. over time unit demand, and hence production volumes, would respond to continuous price declines. The assumption that costs would decline continually like Intel's Tick Tock Model did not withstand the test of time. Empirically, and perhaps misunderstood by the marketplace, **the growth in unit production of transistors has slowed dramatically over the course of this business cycle.** ![[Pasted image 20210919215738.png]] As a consequence, and not surprisingly,** the price decline for computation has begun to plateau.** The public proclaims “the end of Moore’s Law”, not realizing that it has been flawed all along. Source: 1. https://ark-invest.com/articles/analyst-research/wrights-law-2/ #kp