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Technological progress in the microprocessor industry.

Record Type:	Language materials, manuscript : Monograph/item
Title/Author:	Technological progress in the microprocessor industry./
Author:	Sadasivan Pillai, Unnikrishnan K.
Description:	1 online resource (124 pages)
Notes:	Source: Dissertations Abstracts International, Volume: 70-06, Section: A.
Contained By:	Dissertations Abstracts International70-06A.
Subject:	Studies. -
Online resource:	click for full text (PQDT)
ISBN:	9780549810650

Technological progress in the microprocessor industry.
Sadasivan Pillai, Unnikrishnan K.

Technological progress in the microprocessor industry. - 1 online resource (124 pages)

Source: Dissertations Abstracts International, Volume: 70-06, Section: A.

Thesis (Ph.D.)--University of Minnesota, 2008.

Includes bibliographical references

Microprocessor performance increased at a faster rate in the 1990s than in the decade before or after the 1990s. I examine the possible causes of the acceleration in a model that endogenizes performance. The acceleration could have been caused by an increase in the rate of innovation in the upstream lithography industry which supplies the microprocessor industry with capital equipment embodying new technology which can increase performance. Further investigation is needed to understand the cause of the increase in the rate of innovation in the lithography industry. Using data from 1971-2008, I infer that performance is a function of the number of transistors and linewidth, which is a measure of the size of each transistor. Reductions in linewidth lead to faster microprocessors and can be made only by adopting new capital equipment supplied by the upstream lithography industry. The three engineering choices-performance, number of transistors, and linewidth-affect the profits of a microprocessor firm. Increasing the number of transistors increases variable costs and moving to a new linewidth involves huge fixed costs associated with using new lithography equipment. In a monopoly model of the industry, the profit maximizing choice of performance and the number of transistors is determined by the timing of adoption of new linewidth. Assuming a Poisson process for the arrival of innovations that reduce linewidth, I characterize the optimal linewidth adoption policy, and the associated optimal time paths of performance, number of transistors, prices and output. The model does well in fitting empirical facts about the industry. An increase in the rate of innovation in the lithography industry changes the linewidth adoption path of the microprocessor firm and causes performance to increase at a faster rate. In joint work with Sam Kortum and Ana Aizcorbe, I also calculate productivity growth in this industry using growth accounting. Equipment costs are calculated using the implications of a vintage capital model and are then used in the growth accounting exercise. We find that well over half of the real output growth in this industry is the consequence of better technology embodied in new capital equipment.

Electronic reproduction.
Ann Arbor, Mich. :
ProQuest,
2024

Mode of access: World Wide Web

ISBN: 9780549810650Subjects--Topical Terms:

1437762
Studies.
Subjects--Index Terms:

LithographyIndex Terms--Genre/Form:

554714
Electronic books.

Technological progress in the microprocessor industry.
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520 $a Microprocessor performance increased at a faster rate in the 1990s than in the decade before or after the 1990s. I examine the possible causes of the acceleration in a model that endogenizes performance. The acceleration could have been caused by an increase in the rate of innovation in the upstream lithography industry which supplies the microprocessor industry with capital equipment embodying new technology which can increase performance. Further investigation is needed to understand the cause of the increase in the rate of innovation in the lithography industry. Using data from 1971-2008, I infer that performance is a function of the number of transistors and linewidth, which is a measure of the size of each transistor. Reductions in linewidth lead to faster microprocessors and can be made only by adopting new capital equipment supplied by the upstream lithography industry. The three engineering choices-performance, number of transistors, and linewidth-affect the profits of a microprocessor firm. Increasing the number of transistors increases variable costs and moving to a new linewidth involves huge fixed costs associated with using new lithography equipment. In a monopoly model of the industry, the profit maximizing choice of performance and the number of transistors is determined by the timing of adoption of new linewidth. Assuming a Poisson process for the arrival of innovations that reduce linewidth, I characterize the optimal linewidth adoption policy, and the associated optimal time paths of performance, number of transistors, prices and output. The model does well in fitting empirical facts about the industry. An increase in the rate of innovation in the lithography industry changes the linewidth adoption path of the microprocessor firm and causes performance to increase at a faster rate. In joint work with Sam Kortum and Ana Aizcorbe, I also calculate productivity growth in this industry using growth accounting. Equipment costs are calculated using the implications of a vintage capital model and are then used in the growth accounting exercise. We find that well over half of the real output growth in this industry is the consequence of better technology embodied in new capital equipment.
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