The problem with you argument is that 8-bit MCU&#x27;s are a <i>rounding error</i>.<p>The Cortex A series cores are around 2mmx2mm.  The Cortex M series are something like .2mmx.2mm.  It looks like my 10mmx10mm comment was way off.<p>So, let&#x27;s assume that the 8-bit MCU&#x27;s are .1mmx.1mm.  That&#x27;s probably <i>WAY</i> too big, but let&#x27;s start somewhere.  That means that you can fit 7,000,000 on a wafer.  For roughly 3,500 wafers for the entire, worldwide capacity of embedded MCU&#x27;s.<p>The entire, worldwide, <i>annual</i> market for MCU&#x27;s is <i>3,500</i> silicon wafers per year.  That&#x27;s the same number of wafer starts that a big fab has <i>IN A WEEK</i>.<p>And that was 2008.  <a href="http:&#x2F;&#x2F;www.eetimes.com&#x2F;document.asp?doc_id=1169357" rel="nofollow">http:&#x2F;&#x2F;www.eetimes.com&#x2F;document.asp?doc_id=1169357</a><p>Modern fabs can pump out a million a week:
electroiq.com&#x2F;blog&#x2F;2014&#x2F;01&#x2F;tsmc-samsung-and-micron-top-list-of-ic-industry-capacity-leaders&#x2F;<p>This is why everybody wants to produce bigger chips like SOC&#x27;s and why Intel will never switch to ARM until it&#x27;s about to go under.  If your chip is too small, you can&#x27;t move enough to fill your fab <i>even if you give them away free</i>.