The purpose of new technologies is to solve problems. When we solve a problem using a new technology it is either to improve our quality of life or to help us create more value in our everyday labor. Whatever the case, new technologies drives us to do things in a better manner and consequently, makes us in general more productive.
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Productivity is the effectiveness of productive effort. With passing centuries our conception of productivity has changed dramatically. Moreover, with the advent and growth of the computer and information technology industries in the last 40 years we have witnessed a tremendous technological change. The convergence of computing, information and communications is transforming every aspect of society and creating new possibilities for improved productivity. The productivity in the semiconductor industry is and has been, for several decades, a driving force for the economic growth of the world. Productivity growth in the semiconductor industry has averaged 20 percent for the last 10 years, compared to less than 5 percent for all manufacturing industries.
Productivity in this industry is inevitably related to Moore's Law, meaning the regular increase in performance and data processing capabilities in computer chips. Moore's Law is the engine for continued growth, an engine not to be found in any other industry on the planet. Furthermore, this increase in productivity has occurred hand in hand with a decline in consumer prices. The price of a single transistor was $1.00 in 1968 . Today you can buy millions of transistors for $1.00. What other item has declined in price like the transistor?
