A. On a non-GAAP basis, consolidated gross
margin was a 64.2% of revenue this
quarter, in line with the forecast we
provided at the end of the second
quarter. This was about three percentage
points lower than Q2—which we stated
was unsustainably high. The decline to a
more sustainable level this quarter was
due to the return to more typical
product margins and a modestly lower
contribution from deferred elements
coming off of the balance sheet. These
deferred revenue elements carry a very
high margin.

As expected, non-GAAP product gross
margin was also down just over three
percentage points sequentially to 59.8%.
We did not expect last quarter’s
unusually favorable configuration mix to
continue into Q3, and we passed along
cost savings to customers during the
quarter in order to stimulate share
gains.

We outta talk Moore's Law in relation
here.

Relation to manufacturing costs
As the cost of computer power to the
consumer falls, the cost for producers
to fulfill Moore's law follows an
opposite trend: R&D, manufacturing,
and test costs have increased steadily
with each new generation of chips.
Rising manufacturing costs are an
important consideration for the
sustaining of Moore's law.[32] This had
led to the formulation of "Moore's
second law", which is that the
capital cost of a semiconductor fab also
increases exponentially over time.
Materials required for advancing
technology (e.g., photoresists and other
polymers and industrial chemicals) are
derived from natural resources such as
petroleum and so are affected by the
cost and supply of these resources.
Nevertheless, photoresist costs are
coming down through more efficient
delivery, though shortage risks
remain."

A. The only one I own : SLX,
too hard pick a winner out all of them