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So I'm trying to figure out if setting up a new plant costs $100 million and takes a year to come online, and if there's no neon then we can't produce $500 mill
by csense 4y ago
So I'm trying to figure out if setting up a new plant costs $100 million and takes a year to come online, and if there's no neon then we can't produce $500 million worth of chips a month. Why isn't some chipmaker or consortium fronting the $100 million and starting to build the plant now, as a cheap insurance policy to make sure they don't lose billions in revenue if the Ukraine production remains inaccessible for years?
- logifail 4y ago> Why isn't some chipmaker or consortium fronting the $100 million and starting to build the plant now, as a cheap insurance policy to make sure they don't lose billions in revenue if the Ukraine production remains inaccessible for years? Perhaps because there is a non-zero chance the disruption to the supply of neon will have disappeared long before the plant comes online, cheap supplies will be plentiful again, so they'll have "wasted" the $100 million ... and will have to explain to their investors why they took (with hindsight) such a crazy decision?