2min chapter

The Prof G Pod with Scott Galloway cover image

How Chips Rule the Modern World — with Chris Miller

The Prof G Pod with Scott Galloway

CHAPTER

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.

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