Moore observed that the cost per transistor decreased in concert with the shrinking geometries.
... it has been apparent for some time that the Moore's Law curve is running counter to the escalating costs of semiconductor manufacturing, which are rising exponentially as process technology shrinks. This is the result of the increased cost of R&D, testing, and the construction of semiconductor fabrication facilities.
And it is really this aspect of the model that is breaking. Eventually you will be unable to sell enough chips to recoup even the capital expenditures.