How L1 and L2 caches work

[ElPolloDiabl]

Here is an article on how caches work. Really interesting the difference between 1980 and now.
Link:
http://www.extremetech.com/extreme/188776-how-l1-and-l2-cpu-caches-work-and-why-theyre-an-essential-part-of-modern-chips

[ElPolloDiabl]

The article is a a bit over simplified, I like the new rule "add a cache level every 10 years" lol

[ElPolloDiabl]

Is it actually far enough away to cause latency? Everything is on the chip now.

I've also read that adding heaps of level 2 cache is cheaper than increasing the complexity of the cpu. In manufacturing if any of the level 2 cache comes out defective you can route around it instead of tossing the whole chip.