Vol. III — The Globalized Industry Plate III.1 Logarithmic curves
Sources: Moore (1965, 1995); Rock; IBS; TSMC; ASML
Chapter 34 — Running Faster

Two slopes, running in opposite economic directions.

Gordon Moore's curve doubled transistors every two years and made silicon cheaper. Arthur Rock's curve doubled the cost of the factories that printed them, every four. The joke inside Intel's 1975 boardroom was that the second law would, eventually, kill the first.

Plotting Transistors per chip against Capital expenditure for one leading-edge fab, 1971 – 2026. Logarithmic axes. All currency figures in nominal U.S. dollars unless noted.

FIG. 01 / TWIN CURVES
log·log scale

Moore’s LawTransistors per leading-edge chip

From 2,300 transistors on the Intel 4004 in 1971 to roughly 134 billion on the Apple M3 Max in 2023. A doubling every two years across half a century — a feat the chip industry has performed roughly twenty-six consecutive times.

Rock’s LawCapital cost of one new fab

From around $4M in the early 1970s to Morris Chang's 2017 Bloomberg estimate of $20B for a 3nm facility. By 2026, Samsung's Pyeongtaek-3 and TSMC's Arizona Fab 21 phase 2 are budgeted near $25-30B apiece.

NodeYearFab CapexAvg. Design Cost
130 nm2002$2.0 B~$15 M
90 nm2004$2.5 B~$28 M
65 nm2006$3.0 B~$32 M
45 / 40 nm2008$3.5 B~$38 M
28 nm2011$5.0 B$40 M
16 / 14 nm FinFET2014$8.0 B$100 M
7 nm (EUV insertion)2018$11 B$217 M
5 nm2020$15 B$416 M
3 nm2022$20 B$590 M
2 nm (GAAFET)2025$28 B$725 M est.
The rate of technological progress is going to be controlled from financial realities.
Gordon Moore · SPIE Microlithography Symposium · February 1995

The consequence of two opposing slopes is selection. By 2020 the leading-edge logic club had narrowed to three: TSMC, Samsung, and Intel. GlobalFoundries quit 7nm in August 2018; UMC confirmed a year later that nodes below 14nm would not earn back their cost. In memory the same arithmetic left only Samsung, SK Hynix, and Micron. Each survivor is now too consequential to lose — the political problem the next chapter inherits.