The technique described in the proposal is also known as Wafer Scale Integration and has been around for at least 20 years. A Wikipedia article on wafer scale integration can be found at
Of course this is not easy, since given the flaws on the wafers a single large design printed onto a wafer would almost always not work. It has been an ongoing goal to develop methods to handle faulty areas of the wafers through logic, as opposed to sawing them out of the wafer. Generally, this approach uses a grid pattern of sub-circuits and "rewires" around the damaged areas using appropriate logic. If the resulting wafer has enough working sub-circuits, it can be used despite faults."
This wikipedia article also states "Wafer-scale integration, WSI for short, is a yet-unused system of building very-large integrated circuit networks that use an entire silicon wafer to produce a single "super-chip". Through a combination of large size and reduced packaging, WSI could lead to dramatically reduced costs for some systems, notably massively parallel supercomputers."
The following abstract from
Alessandro Zorat1, 2
(1) Department of Computer Science, State University of New York at Stony Brook, 11794 Stony Brook, New York, USA (2) Present address: Istituto di Ricerca Scientifica e Tecnologica, Loc. Pant=E8 di Povo, 38050 Trento, Italy
Received: 25 July 1986
Abstract With the advent of wafer-scale integration (WSI), the placement of several processors on a single VLSI wafer is becoming a realistic possibility. To avoid the problems of a very low yield inherent in any silicon component of (very) large area, redundant components will be used. In this article we examine three different solutions for reconnecting the nonfaulty processors so that the resulting network is a square grid. We then present results of simulations for various percentages of faulty processors, which show that a small amount of redundancy is the interprocessors paths and a simple back-track based algorithm can produce a resulting grid that, while not necessarily optimal, includes most of the nonfaulty processors. This research was supported by the National Science Foundation, under grants ECS-80-25376 and ECS-83-05195."