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Feels like we're reaching a plateau fairly soon. I mean we are already at tick-tick-tock cycle here. I'm not discounting the amazing feat in reaching this point, but there are better be other improvements in instruction sets and specialized cores (eg. The ISP and the ML cores can still be improved). The trick will be in those things in the future when simple size reduction is no longer feasible.
 
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Hate to burst everyone's bubble but there is nothing on these chips that is actually 4nm in dimensions just like the current 5-6-7nm processes that every chip manufacturer is making. It's all a historical node naming convention.
How does that work then?
 
People fall for it because it's so brazenly dishonest. I mean, why call it a nanometer if it isn't measuring anything? It used to, and everyone knows things keep getting smaller, so no one expects they're suddenly being lied to. Not even the media, who report on quantum tunneling effects and the end of Moore's law with each new process node.
Yes, it clearly works, you are correct. Nobody cares about transistor density, it’s easier just to talk about the nonometer moniker.
 
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I still don’t understand what is 5 mm. The chip? The tools that made the chip?
5 nano meter not mili. That's 5x10E-9 Metres. It's an indication of how small the features are on the chip. It used to be the smallest structure. Now it's mostly marketing, but its an indication of how complex you can make a chip economically. The nice thing about silicon is that performance improves and power consumption improves as you make the transistors smaller. It's just tricky (and expensive) to do. Intel might argue that their 10nm is more like TSMC's 7nm ....
 
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How does that work then?
It's really no different then a new iPhone these days. It is marketing. TSMC and their 5nm node is just a updated version of their previous nodes, that will have updates such as architecture and a higher transistor density. Similar to the difference between a iPhone 12 and iPhone 13.
 

It actually does mean something.

This article is not accurate like many others out there. There is nothing on TSMCs 7nm chip that actually has 7nm dimensions just like there is nothing on Intel's 10nm node that is 10nm. In fact as far as I understand Intel's 10nm node and TSMC's 7nm node have similar transistor densities and performance. Node names matching transistor size died with the advent of the fin-fet transistor.

https://www.electronicsweekly.com/blogs/mannerisms/********/node-name-nonsense-2013-10/

And another on wikichip explaining the evolution:

 
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