When you make a Lego car you can build a pretty small car, and by using the smallest parts you can find and by reducing unessecary room between parts you can reduce its size.
But at the end you’re still using Lego, at some point making the car smaller would mean you’d have to remove a wheel and it would tip over.
The same goes for CPU cores, we’ll need to use atoms, and those have a fixed size, furthermore the core has to be reliable, so it needs proper isolants, to make sure an electrical current doesn’t jump between parts.
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