Think of a CPU as a network of connected nodes (transistors). In order to provide more capabilities the number of nodes and the paths between them increase to a degree, but that increase is linear. So one generation of a CPU might have a million nodes, the next might have 1.5 million. With miniaturization of the circuit, the number of nodes and paths are condensed into a smaller footprint. The current fabrication processes are down to 30 nanometers.
Let's say that you need five units per node and five units distance between two nodes. End to end, in a straight line you can create a bus of 22222 nodes in 1 CM of space. You can make a matrix of 493 million nodes in a square CM. The design of the circuit is what contains the CPU's logic. Doubling the space is not what increases the speed, it just would enable the circuit to have more logical operators. Or in the case of multi-core CPUs to allow the circuit to handle more work in parallel. Increasing the footprint would actually decrease the clock speed because the electrons would have to travel longer distances through the circuit.
4I don't know all the details, but basically the closer the transistors etc are together on the chip the more efficient it is. So quadrupling the area would make the chip slower. – ChrisF – 2011-11-30T15:46:57.140
1Plus, especially considering the current state of applications, modern day CPUs spend an awful lot of time doing nothing. They twiddle their thumbs while us, the users, figure out what we want to do. – surfasb – 2011-11-30T16:07:36.497
1@ChrisF You confuse the impact of die shrinking (speed gain as a result of reduced capacities) with reduced transistor numbers. Ask yourself: will the individual core on a dual core run faster than the one on a quad core? – artistoex – 2011-11-30T17:14:32.030
2This is done - look at Intel's new LGA2011 platform. – Breakthrough – 2011-11-30T17:31:00.523
1The clock speed has nothing to do with the number of transistors. However, with more transistors you can design instructions to take fewer clock-cycles to complete. – BlueRaja - Danny Pflughoeft – 2011-11-30T20:16:01.163
1Also, yield. The chance to get a defective chip is proportional to the area. If you made your dies big enough you will have to throw away most of the dies. This means a very low yield, which means a very high price. – drxzcl – 2011-11-30T23:02:46.840
See relevant topic here: http://electronics.stackexchange.com/questions/15848/why-cpus-are-becoming-smaller-and-smaller
– Kromster – 2011-12-02T12:54:07.9773I disagree with the closed votes. There are clear reasons as to why making a bigger chips doesn't make sense as is shown by the top answers. So it isn't an opinionated question (like "Is android better than ios"). I was also interested by this question! – David Miani – 2011-12-17T08:04:50.650