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There are not going to be any bankruptcies even in a severe oversupply situation. Chip manufacturers are much higher margin and better capitalized than in the p
by xadhominemx 5y ago
There are not going to be any bankruptcies even in a severe oversupply situation. Chip manufacturers are much higher margin and better capitalized than in the past, and a lot of the riskier capacity expansion this time around has been financed by customers
- netcan 5y agoThis is probably true, but it may not mean any less consolidation. Consolidation is a fairly easy bet to place though from a 2022 POV, so I guess GP (and I) are predicting cold during winter.
- xadhominemx 5y agoI can’t think of any more major consolidation that can take place. Maybe within NAND, but for different reasons as there’s not really risk of a long lasting supply glut in that market.
- thatguy0900 5y agoGovernments have/may start seeing chipmaking as something of national security, right? So would they let a great amount of consolidation occur or will every continent have its own heavily subsidized chip industry