Bill Holt, executive vice president and general manager for Intel's Technology and Manufacturing Group said that the company released chips every two years like clockwork, but making smaller chips is becoming challenging and more expensive.

 As a result, Chipzilla could not keep up with Moore's law for a while and chip advancements and cost savings slowed down with the current 14-nanometer process.

Holt claims this was just a blip and Intel will be back on track with Moore's Law in relation to the economics and advancements in chip making.

"While it's been harder than we thought and taken longer than we liked, we do not see in the long term that there will be a difference between what we were able to achieve in the past and what we expect to achieve going forward," Holt said.

The problems began with 14-nm process. Manufacturing issues led to product delays, and Intel slowed chip advancement to a 2.5-year time frame.

This caused Intel to break away from the "tick-tock" model, which calls for two generations of chip technologies per manufacturing process and move to three.

"Kaby Lake" will follow Broadwell and Skylake on the 14-nm process.

Holt said that Intel had learnt from this mistake and will achieve better scaling and cost savings with the upcoming 10-nanometer and 7-nm processes, Holt said. The first 10-nm chips, code-named Cannonlake, will ship in 2017.

But continuing Moore's Law is becoming an expensive proposition. In 2011, Intel determined it would have to spend $104 billion over a 10-year period on manufacturing and development of technology and products however in 2015 it is spending $270 billion. All this is because of development costs related to tools, wafers and manpower.

Bill Holt