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Chip fab has high fixed costs that take time to recoup. If they build more capacity now for demand that evaporates by the time it comes online, they are out a
by thirtyseven 9y ago
Chip fab has high fixed costs that take time to recoup. If they build more capacity now for demand that evaporates by the time it comes online, they are out a huge amount of $$.
- Const-me 9y ago> Chip fab has high fixed costs How’s that relevant? nVidia has no chip fabs. They use third party services. Currently TSMC but if TSMC is overbooked there’re others, e.g. for the current-gen GPUs nVidia also considered Samsung but apparently got better deal from TSMC.