Why is Moores Law important for managers how does it influence managerial thinking
What Is Moore's Law?Moore's Law states that the number of transistors on a microchip doubles every two years. The law claims that we can expect the speed and capability of our computers to increase every two years because of this, yet we will pay less for them. Another tenet of Moore's Law asserts that this growth is exponential. The law is attributed to Gordon Moore, the co-founder and former CEO of Intel. Show
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Watch Now: What Is Moore's Law?Understanding Moore's LawIn 1965, Gordon E. Moore—co-founder of Intel (INTC)—postulated that the number of transistors that can be packed into a given unit of space will double about every two years. Gordon Moore did not call his observation "Moore's Law," nor did he set out to create a "law." Moore made that statement based on noticing emerging trends in chip manufacturing at Fairchild Semiconductor. Eventually, Moore's insight became a prediction, which in turn became the golden rule known as Moore's Law. In the decades that followed Gordon Moore's original observation, Moore's Law guided the semiconductor industry in long-term planning and setting targets for research and development (R&D). Moore's Law has been a driving force of technological and social change, productivity, and economic growth that are hallmarks of the late 20th and early 21st centuries. Moore's Law implies that computers, machines that run on computers, and computing power all become smaller, faster, and cheaper with time, as transistors on integrated circuits become more efficient. Nearly 60 Years Old and Still StrongMore than 50 years later, we feel the lasting impact and benefits of Moore's Law in many ways. ComputingAs transistors in integrated circuits become more efficient, computers become smaller and faster. Chips and transistors are microscopic structures that contain carbon and silicon molecules, which are aligned perfectly to move electricity along the circuit faster. The faster a microchip processes electrical signals, the more efficient a computer becomes. The cost of higher-powered computers has been dropping annually, partly because of lower labor costs and reduced semiconductor prices. ElectronicsPractically every facet of a high-tech society benefits from Moore's Law in action. Mobile devices, such as smartphones and computer tablets would not work without tiny processors; neither would video games, spreadsheets, accurate weather forecasts, and global positioning systems (GPS). All Sectors BenefitMoreover, smaller and faster computers improve transportation, health care, education, and energy production—to name but a few of the industries that have progressed because of the increased power of computer chips. Moore's Law's Impending EndExperts agree that computers should reach the physical limits of Moore's Law at some point in the 2020s. The high temperatures of transistors eventually would make it impossible to create smaller circuits. This is because cooling down the transistors takes more energy than the amount of energy that already passes through the transistors. In a 2005 interview, Moore himself admitted that "...the fact that materials are made of atoms is the fundamental limitation and it's not that far away...We're pushing up against some fairly fundamental limits so one of these days we're going to have to stop making things smaller." Creating the Impossible?The fact that Moore's Law may be approaching its natural death is perhaps most painfully present at the chip manufacturers themselves; as these companies are saddled with the task of building ever-more-powerful chips against the reality of physical odds. Even Intel is competing with itself and its industry to create what ultimately may not be possible. In 2012, with its 22-nanometer (nm) processor, Intel was able to boast of having the world's smallest and most advanced transistors in a mass-produced product. In 2014, Intel launched an even smaller, more powerful 14nm chip; and today, the company is struggling to bring its 7nm chip to market. For perspective, one nanometer is one billionth of a meter, smaller than the wavelength of visible light. The diameter of an atom ranges from about 0.1 to 0.5 nanometers. Special ConsiderationsThe vision of an endlessly empowered and interconnected future brings both challenges and benefits. Shrinking transistors have powered advances in computing for more than half a century, but soon engineers and scientists must find other ways to make computers more capable. Instead of physical processes, applications and software may help improve the speed and efficiency of computers. Cloud computing, wireless communication, the Internet of Things (IoT), and quantum physics all may play a role in the future of computer tech innovation. Despite the growing concerns around privacy and security, the advantages of ever-smarter computing technology can help keep us
healthier, safer, and more productive in the long run. What Is Moore's Law?In 1965, Gordon Moore posited that roughly every two years, the number of transistors on microchips will double. Commonly referred to as Moore’s Law, this phenomenon suggests that computational progress will become significantly faster, smaller, and more efficient over time. Widely regarded as one of the hallmark theories of the 21st century, Moore’s Law carries significant implications for the future of technological progress—along with its possible limitations. How Has Moore’s Law Impacted Computing?Moore’s Law has had a direct impact on the progress of computing power. What this means specifically, is that transistors in integrated circuits have become faster. Transistors conduct electricity, which contain carbon and silicon molecules that can make the electricity run faster across the circuit. The faster the integrated circuit conducts electricity, the faster the computer operates. Is Moore’s Law Coming to an End?According to expert opinion, Moore’s Law is estimated to end sometime in the 2020s. What this means is that computers are projected to reach their limits because transistors will be unable to operate within smaller circuits at increasingly higher temperatures. This is due to the fact that cooling the transistors will require more energy than the energy that passes through the transistor itself. What is Moore's law and why is it important to managers?Moore's Law applies to the semiconductor industry. The widely accepted managerial interpretation of Moore's Law states that for the same money, roughly eighteen months from now you should be able to purchase computer chips that are twice as fast or store twice as much information.
Why is Moore's law Important?Moore's Law has mainly been used to highlight the rapid change in information processing technologies. The growth in chip complexity and fast reduction in manufacturing costs have meant that technological advances have become important factors in economic, organizational, and social change.
What is Moore's law and how might it affect business decisions?In its current form, Moore's Law states that the amount of transistors per semiconductor should double every two years without added cost, allowing the computer industry to offer more processing power in lighter and smaller computing devices for the same amount of money every two years.
Do you think Moore's law is still applicable today why or why not?The simple answer to this is no, Moore's Law is not dead. While it's true that chip densities are no longer doubling every two years (thus, Moore's Law isn't happening anymore by its strictest definition), Moore's Law is still delivering exponential improvements, albeit at a slower pace.
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