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I think the problem is that cutting edge chip fabs are insanely expensive. Like $10-$20 billion dollar range. It's also ridden with specialty, so the risk of (v
by Itsdijital 8y ago
I think the problem is that cutting edge chip fabs are insanely expensive. Like $10-$20 billion dollar range. It's also ridden with specialty, so the risk of (very) expensive set backs and fuck ups is much higher for new entrants to the market.
The barrier to entry is massive, even for mega corporations.
- baybal2 8y ago> Like $10-$20 billion dollar range. And over 100B for an entire fab complex, if you want to have even a remote hope of attaining real economies of scale. This is why I predict that this industry will go the way of jet engine manufacturing, without any hope of any new competitor coming.