After a lapse, Intel looks to catch up with Moore's Law again

For Intel, the temporary inability to keep pace with Moore's Law -- the foundation of its business -- was a bit of an embarrassment, but the company is trying hard to catch up.

Moore's Law is an observation that has led to faster, cheaper and smaller computers, and a concept that Intel has followed for decades. It states that the density of transistors doubles every two years, while cost per transistor declines.

Until recently, the company released chips every two years like clockwork. But making smaller chips is becoming challenging and more expensive, said Bill Holt, executive vice president and general manager for Intel's Technology and Manufacturing Group, during the company's annual investor day last week.