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The Cost of Manufacturing Chips
The primary chip on the iPhone will have 15 billion tiny transistors carved into it, each one of which is smaller than the size of a virus. Most of the 20 billion for a new chip making facility goes to buying tools that are capable of manufacturing chips. The machines involved themselves cost often $100 million apiece. Intel's five-year stock performance has almost been cut in half. And it feels as if they should be ground zero for this kind of innovation.