But if there were, the slightest overclocking of that group of chips would incur one hell of a performance gain. (And lots of extra electrical use)
This is nonsense. Overclocking by x% always brings a constant x% performance gain, whether it is 88 small chips or, say, 4 large chips.
Not exactly true, there are interconnect/bus issues and firmware issues that might stop that from being true. If you have overclocked a normal CPU you know that something
other than the main chip itself might limit a decent performance gain. Chips are usually a part of a system and not a standalone device.
Talking in terms of ASIC being overclocked, it depends on a number of design decisions. Overclocking 8 massive chips from 60 to 120 Gh/s is not the "exactly" the same deal as overclocking 88 chips that subdivide the work.
As long as you are dividing the heat load across a wider array of chips with more surface area [88 for example] and as long as your cooling is sufficient for all 88 (and you have enough space for all the chips), no single die should experience the same heat load as 1 in a group of 8. You can double the clock on a group of 88, but the heat is shared across a wider area.
In modern computing the idea is to create hyper efficient chips at a decent clock rate and stack them in as tiny a package as you possibly can. In fact, these days most CPU vendors are trying to compact as many cores as possible into one socket.
AMD has 32 per socket as an experimental design while intel is aiming for 50.
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In the ASICs coming from the vendors, depending on the design decisions being made, you don't have to go with that logic. You can spread it out into clusters/modules with their own heatsink (like bASIC did).
Anyway, overclocking is much more than just changing the rate of the clock if you are designing the hardware. Perhaps Avalon has gone with the "shot gun" approach where the chips are all very inefficient but they make up the difference by:
1) Perhaps in their simplicity. (reliable, easy to produce dies?)
2) Perhaps by being so tiny alot of them can be packaged together like a mini rig?
I dunno. But there is more than one way to build a system. As long as you change the principles of the design enough that it makes practical sense.
BFL went with the idea of creating dense "Full custom" chips with high performance in a low nm process. But they are no "Intel" or "AMD". God knows how many failures they might face per wafer if their fab bakes the chips just slightly off.
Intel and AMD have their fabs set up to try tons of different combinations in one go. As the fab proceeds they get good data on what worked great and what works terrible as the layers are checked and baked. Therefore the first chips out of their fabs are usually the worst. While the last runs are their best and most efficient chips (and highly overclockable).
etc...