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Moore's Law - Concept

In 1965, Gordon Moore was preparing a speech and made a memorable observation. When he started to graph data about the growth in memory chip performance, he realized there was a striking trend. Each new chip contained roughly twice as much capacity as its predecessor, and each chip was released within 18-24 months of the previous chip. If this trend continued, he reasoned, computing power would rise exponentially over relatively brief periods of time.

Moore's observation, now known as Moore's Law, described a trend that has continued and is still remarkably accurate. It is the basis for many planners' performance forecasts. In 26 years the number of transistors on a chip has increased more than 3,200 times, from 2,300 on the 4004 in 1971 to 7.5 million on the PentiumŪ II processor.