Intel Corporation (NASDAQ:INTC) Having a Hard Time Trying to Keep Up With Moore’s Law


Intel Corporation (NASDAQ:INTC) is facing more pressure trying to maintain Moore’s law. The company has been having trouble trying to keep up with the pace.

During a conference call on Wednesday, the chip-making giant announced that the next generation chips will be delayed. The processor nicknamed “Kaby Lake” will be released in 2017, a year later than the expected release as stipulated by Moore’s law. According to the premise of the law, the number of transistors installed in a chip is expected to double every two years. It was instituted in 1965 by Intel’s co-founder, Gordon Moore. The processors will also host a 14-nanometer process instead of the expected 10-nanometers.

The law is more or less a prediction that every ten years, the number of transistors on a chip will double while the processor shrinks in size. The law was later revised to two years due to the fast rate of technological growth. It is one of the most popular ideas in the technology industry. Intel has been at the forefront of the PC industry with some of the most powerful chips like the Core i7 chip. It was the first company to use the 14-nanometer architecture though there were difficulties in the development process, but production kicked into gear in 2014. It was also equally hard to market the chip.

Intel Corporation (NASDAQ:INTC)’s next chip has been even more challenging to develop. The company’s CEO Brian Krzanich stated that the last two chip transitions have pointed towards an expanding time frame of 2.5 years rather than two years. Despite Intel’s struggle, the competition has been hard on their feat trying to take the crown. International Business Machines Corp (NYSE:IBM) recently announced a 7nm tech chip. It is not clear whether the chip is stable enough to perform normal tasks. Tech analysts suggest that the chip will most likely suffer breakdown due to radiation. The chip is still undergoing testing and is not yet available for large-scale production.