Moore’s law describes a long-term trend in the history of computing hardware. The number of transistors that can be placed inexpensively on an integrated circuit doubles approximately every two years. This trend has continued for more than half a century and is expected to continue until 2015 or 2020 or later.
The capabilities of many digital electronic devices are strongly linked to Moore’s law: processing speed, memory capacity, sensors and even the number and size of pixels in digital cameras. All of these are improving at (roughly) exponential rates as well (see Other formulations and similar laws). This exponential improvement has dramatically enhanced the impact of digital electronics in nearly every segment of the world economy. Moore’s law describes a driving force of technological and social change in the late 20th and early 21st centuries.
via Moore’s law