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Analysis: A slowdown in Moore's Law leads to $9.4 Billion Silicon Valley Merger

ZDNet - Moore's Law is slowing because of the increased costs in moving to larger silicon wafers (450 mm) and smaller geometries of 14nm.

Moore's Law has been running for almost half-a-century and doubling the density of transistors on a wafer while cutting costs in half on about a 18 month to 24 month schedule on a very consistent basis.

However, the costs of maintaining that incredible pace of innovation has been climbing tremendously and fewer chipmakers can afford to buy the hugely expensive production lines that are required to produce chips at the edge of the physical limits of reality.

Feature sizes of just a few atoms thickness have to be incredibly accurate and new materials with the right electrical properties at such small scales, have to be discovered. New sets of tools such as those produced by Applied Materials and Tokyo Electric have to be developed at great cost but with very few customers. 

Moore's Law appears to be slowing to a three to four year doubling in transistor density.