Eu Chip Act: How Moore’s Law has shaped the chip market

Rafael Perez Medina
July 12, 2022

    In 1965 Gordon Moore, one of the founders of Intel and head of the Research department, published the editorial of the company's R&D magazine: the piece "Cramming more electronic components into an integrated circuit"(1). Here he predicted (taking into account data from 1959) the rate of addition of transistors into an integrated circuit (ICs - Integrated Circuits). This prediction was christened 'Moore's Law'. The Intel research director stated that the number of transistors doubles every 24 months in a given area of the circuit. This is important to determine the number of parallel operations a given circuit can compute (the hardware determines how many calculations the circuit can handle at the same time).

   What happens at the nanometer scale is exactly like a light switch that turns on and off: it allows or blocks the passage of an electrical pulse. A transistor consists of a source, a drain and a gate. This gate allows or prevents the passage of the signal. The distance between source and drain is what Moore takes into account to make his prediction (The distance is shortened every 24 months in his words).

    This distance between Drain and Source today is around 5 nm (Apple M1 chip, Intel Quad-Core, etc). Which means that this distance consists of a few atoms between one part and the other (E.G. A Quad-Core contains 2 Billion transistors inside (2).

     This prediction that was used to make optimizations to the design of our transistors and chips is now losing validity. This distance no longer follows this parameter, although Moore's Law continues to have certain applications to make projections and perform certain analyses. Other more accurate measurements are used to measure the rate of improvement of new chips. All of this is important because it allows us to understand where the technology inside laptops and notebooks is developing, and how fast it is improving.

     On February 8, 2022, the European Union signed "The Chip Act", an important agreement about the chip industry in the region. After the major shortage seen worldwide during the COVID-19 pandemic, this agreement seeks to organize a plan for the continent to increase its independence from other regions and countries.

     This document contains a series of actions, investments, working rules and directions to improve the European chip and semiconductor industry (today Europe represents 10% of the world semiconductor market, depending on many third countries to feed its demand)(3). This also goes hand in hand with the incentive (and investment) in different parts of the supply and distribution chain to improve vulnerabilities (4), as well as transforming the continent into a benchmark in production (since Europe is a world reference in chip research). With this agreement, Europe wants to set the standard and build "...a resilient European ecosystem and strengthen Europe as a technology leader" (5).

BIBLIOGRAPHY:

(1) Moore, G., Cramming more components onto integrated circuits, Electronics, Volume 38, Number 8, April 19, 1965.

(2) Prof. Andrea Morello, University of South Wales

https://www.youtube.com/watch?v=rtI5wRyHpTg

(3) COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS. A Chips Act for Europe, 08/02/2022

https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52022DC0045

(4) IPC Welcomes the European Chips Act, Febbraio 8, 2022

https://www.ipc.org/news-release/ipc-welcomes-european-chips-act

(5) 15 September 2021, Commission President Ursula von der Leyen announced an EU Chips Act in her State of the Union speech