Moores Law states that every two years transisitors on the chip double. Which has been the case up till now, but experts believe that in the future the same may not be possible.
Current chips are of 90nm scale. research is on on 65 nm and 45 nm scale chips. Recently IBM and Intel have started to focus on the 32 nm category and chips based on the same would be available in the market soon. In future research would be focussed on 22 and 16 nm chips.
What is all this talk about Nanoscale chips. This is the size of transistors, as the transistor size decreases more and more transistors can be packed on to the chip and energy requirement goes down and speed and powerfulness of the chip increases. Also there is economy of scale in productivity gains which result into chip cost dropping and the gains being passed on to the end consumer.
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