From its earliest days, Intel built a flywheel harnessing Moore’s Law (the empirical observation that the number of components on an integrated circuit achieved at an affordable cost doubles roughly every eighteen months). From this insight, Intel’s founding team created a strategic compounding machine: Design new chips that customers crave; price high before competition catches up; drive down unit costs as volume increases (due to economies of scale); harvest high profits even as competition drives down prices; and reinvest those profits into R&D to design the next generation of chips. This
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