Moore's Second Law in the Age of Devices

Apple can't afford to be sentimental or patriotic as it steps up its war with Samsung, writes Jonny Evans for ComputerWorld. It needs absolute control over its supply chain, but it also needs costs comparable to those of its Korean rival, which owns its own fabs and even made the A5 inside your iPhone at a plant in Austin, Texas.

All this is why I wrote here the other day that Intel needs to make its own devices. Either that or it should split in two, competing with ARM on designs and TSMC as a third-party fab, head-to-head.

This much is clear. Moore's Second Law compresses margins constantly, forcing companies to take command of both their supply chains and their customers. The pressure on America's technology leaders is only going to increase.

At the time of publication, the author was long AAPL, INTC, and ARMH.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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