Why did falling microprocessor costs increase the use of electronic controls in appliances and automobiles?

The development of the microprocessor revolutionized the design of consumer and industrial products by enabling the integration of computer hardware into devices where it was previously impractical.

Initially, the high demand for microprocessors in early applications, such as industrial robotics and microcomputers, drove high-volume production. This scale of manufacturing led to a dramatic reduction in costs, making it economically feasible to incorporate electronic controls into everyday items like household appliances and automobiles.2

Before these cost reductions, electronic control systems were often too expensive for such widespread use. However, as prices fell, manufacturers began utilizing these integrated circuits to add sophisticated features—such as programmable settings in microwave ovens or optimized ignition and fuel systems in cars—to improve performance and efficiency. Further advancements in VLSI technology continued to increase circuit density while manufacturing improvements sustained these cost-saving trends, facilitating the broad computerization of consumer goods by the mid-1980s.12