Cost. To build a computer chip you start with a circular flat piece of metal called a wafer. The wafer is a fixed cost, say $1000, and a fixed size, say 12″ diameter.
Therefore, the cost of the chip is directly related to the size. If you can fit 10 chips on your wafer, then your chips would cost $100 each to make. But if you fit 100 chips on your wafer, then your chips would cost $10 each to make.
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