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Politics : Formerly About Applied Materials

AMAT 228.37

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11:05 AM EST

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To: Jack Kunkle who wrote (30742)	6/1/1999 8:40:00 AM
From: Katherine Derbyshire	Read Replies (1) of 70976

>> <Because the doublings in density were not accompanied by an increase in cost,.......Higher levels of integration mean greater numbers of functional units can be integrated onto the chip, and more closely spaced devices, such as transistors, can interact with less delay. Thus, the advances gave users increased computing power for the same money, spurring both sales of chips and demand for yet more power. ><< I know that. That's Moore's law, and a different point from the one I'm making. If a chip with 4X the transistors only costs 2X as much as its predecessor, then the consumer gets more computing power for less money, but the ASP for chips has gone up. >>I find it very hard to believe that average selling prices for commodities trend upward over time. << Average selling prices for chips (not transistors) trend upward over time. If that means chips are not commodities, well, so be it. Katherine

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