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Very little information can be stored inone single transistor, so the technology is initially not capable of much.
The inferior performance of the transistor implied that the inventors were not encouraged to work further on it.Vacuum tubes was the dominant technology for computers back then, and it was hard to see how the transistor could possibly replace the tubes.
Ignoring the transistor is a mistakethat hundreds of industrial giants would make over the next decades, often resulting in bankruptcy.
William Shockley and the otherinventors left Bell Labs, moved to Silicon Valley and founded Shockley Semiconductor…
Many engineers left Shockley inorder to start Fairchild Semiconductor…
Fairchild was later disintegrated, Gordon Moore among others then founded Intel…
As Intel and other semiconductor firms developedcheaper and better transistors, putting them together into Integrated Circuits and Mikroprocessors, Gordon Moore recognized a fascinating pattern….
Over time, the amount of transistors that could be puton a circuit for the same price doubled every 18th month! So for the same price you can buy something whichcan store twice as much information, every 18th month! This is Moore’s Law.
The implications are enormous! If the price/performance ratio doubles in 18 months…And then doubles again in 18 months…And then doubles again in 18 months…Then the price/performance is 8 times higher in only 4,5 years! 16 times higher in 6 years!
This is a furious pace of technological development! It implies that as the price of a transistor goes down andthe performance of digital technology increases, virtually everything can sooner or later be expressed or represented with digital technology.
Let’s take a look at how Moore’s law has improved the graphics in computer games over time…
More and cheaper transistors makes Pacman look better than the Space Invader…
Summing it up: Moore’s law – the rapid improvement of digital technology, has disrupted hundreds of firms and reshaped entire industries. The high pace of development combinedwith the fact that digital technology initially has an inferior performance has created great problems for great firms. Listening too carefully to current customers, established firms stay in the old technology for too long, and are then disrupted.