New Opportunities For Profitable Growth

Source: Clayton M. Christensen, Steven King, Matt Verlinden & Woodward Yang

The full impact of Moore’s Law on the semiconductor industry is illustrated by the red line, which shows how the cost per unit falls, but only at ever-rising manufacturing volumes. In contrast, TPS not only lowers the minimum cost but also changes the shape of the curve, making it possible to produce at low cost and at low volume. This is the new economics of semiconductor manufacturing.