"a prediction by a former IBM director that the speed of computer chips of the same price would double every 18 months. There is no 'law' behind this formula in any scientific sense but so far the prediction has held or been surpassed."
"Gordon Moore, co-founder of Intel, observed that the number of components per integrated function seemed to be doubling about every 18 months. He envisioned that this trend would continue into the foreseeable future. What is amazing about this is that he created the original graph in 1965 and it still holds true 45 years later. In today’s electronics industry, the Law is re-stated as a doubling of the number of transistors on a chip, or a doubling of chip performance. This translates into a doubling of overall computational power approximately every two years. Viewed from a cost basis, the computing power that a $1,000 buys as followed this performance doubling line for the past 100 years." (http://sourcetech411.com/2012/12/engineering-laws-moores-rocks-butters-and-others/)
JAMES ALLEN on Moore’s Second Law:
"Arthur Rock, a Silicon Valley Venture Capitalist who has invested in high technology companies such as Intel, Apple, Teledyne and Scientific Data Systems noted that the cost of a semiconductor chip fabrication plant doubles about every four years. Rock was one of the original backers of Fairchild Semiconductor, assisting founder Sherman Fairchild when he was considering leaving Shockley Semiconductor Laboratories in the 1950’s. This is sometimes referred to as ”Moore’s Second Law”." (http://sourcetech411.com/2012/12/engineering-laws-moores-rocks-butters-and-others/)