Startups Abandon Moore's Law

Producing a cutting-edge chip today is more difficult and more expensive than it's ever been. With a foundation in Moore's Law, which dictates that the number of transistors on a chip doubles every two years, the rules of economics and physics are stretched. Semiconductor makers are spending billions, to either build joint manufacturing facilities (called fabs) or to create research agreements that help offset the basic costs and challenges involved in trying to push a technology forward.

With costs for the latest technology rising, smaller startups and their venture backers have taken a look at the benefits of keeping up with the Intels, and decided that in some cases, old-school technology may be the best way to make a product — and a buck.