Why do chips become less cost effective per component for both very large and very small numbers of compone?

What causes the computer chips to become less cost effective per


component for both very large and very small numbers of components per chip?Why do chips become less cost effective per component for both very large and very small numbers of compone?
for small numbers of components, the fixed cost of making the chip outweigh the costs of the individual components, but the chip may still be cost effective when considered as part of a system in which the chip takes up much less room than the equivalent components.





for very large numbers of components, the issue is that if just one of the components on the chip has a flaw, then the whole chip must be discarded. (actually lately the discarded chips are being ground down to the the substrate and remade into PV solar cells.).