Too cheap to matter: over abundant microchips, and what we can learn from them

Research highlights the pervasive integration of ultra-cheap microchips into everyday products, classifying them as a 'smart material' due to their abundance and disposability. These chips, often older technological nodes, account for the vast majority of microchip sales annually, yet their ubiquity renders them invisible despite their critical role in 'smart' functionalities. This phenomenon raises questions about their environmental impact, the rationale behind their widespread deployment, and the implications of their inherent obsolescence, particularly when compared to the focus on advanced ICs for data centers and AI.

Why it matters

The proliferation of ultra-cheap, disposable microchips presents significant strategic implications for resource management, supply chain resilience, and environmental sustainability. Understanding their widespread, often unseen, integration is crucial for evaluating technological waste streams and the true cost of 'smart' product development across industries.

Key insights

• Over 400 billion microchips are sold annually, with the vast majority being ultra-cheap (under $1).
• These inexpensive microchips are so abundant that they are considered a 'smart material', integrated and disposable in various everyday items.
• Older technology nodes (dating back to the 1980s) continue to be produced and widely utilized in these low-cost applications.
• The integration of these chips into products, often to add 'smartness' regardless of necessity, contributes to their increased obsolescence.
• While advanced Integrated Circuits (ICs) for data centers and AI receive significant attention, the widespread and invisible impact of these disposable microchips is largely overlooked.

Source

arXiv — Computers and Society — https://arxiv.org/abs/2608.17541