Intel Corporation (NASDAQ:INTC) plans to continue enforcing Moore’s Law

Intel Corporation (NASDAQ:INTC) has plans to introduce new changes that will demand enforcement of Moore’s Law.

Where do analyst foresee upcoming resistance in INTC?

Intel has been using Moore’s Law for quite a long time. The company attributes part of its success to the law especially in terms of performance. The Law established that Intel should double its chip transistor count once every two years. So far, this inference has proved to work well with Intel’s ability to maintain sales and profitability for its products.

The law has been particularly instrumental because chip technology has been experiencing exponential development. This means new and advanced chips keep emerging from developers faster than computer companies can keep up with. Some may argue that the law limits or slows down the advancement of more powerful PCs from Intel. The truth is contrary to this inference for a few reasons. One of them is the heating problem. Faster and more powerful chips tend to produce a lot of heat.

The two-year regulation introduced by Moore’s Law allows Intel to develop solutions for managing the excessive heat produced by advanced processors. This regulation has been instrumental for Intel’s latest devices, such as the Window’s Surface pro that does not have any fan. In the pursuit of shedding weight and thickness, Intel had to develop and test new processors that would emit less heat for Microsoft’s new device. The two year period allows Intel to refine the chips and remove any flaws that would be associated with the premature release.

Moore’s law has also played an important role in maintaining sanity in the sales division. If more devices were made every time new processor chips, more devices would flood the markets making it increasingly harder to maintain high level of sales for each model. The time difference is also important because once the new updates are made, customers can feel the improvement in the performance. They can therefore fully appreciate the new change.

Intel’s learning curve within the two-year time frame allows the company to boost development to levels that can maintain competitiveness with other devices. Apple Inc. (NASDAQ:AAPL) also has a time frame for introducing new processors in its reveal devices such as the Core M processor for the new MacBook Air.

About the Author

Erica is a graduate of New York University’s school of Journalism. She joined US Markets Daily as a general assignment reporter in January of 2008.

Leave A Response