3 ms·
Semiconductors are a low margin business. There's a reason why it's not in the USA anymore, even though it started in the USA, and it's not the lack of smart pe
by mjfl 4y ago
Semiconductors are a low margin business. There's a reason why it's not in the USA anymore, even though it started in the USA, and it's not the lack of smart people - the profits were competed away. Now the profits are in design - NVIDIA, AMD, Apple etc.
Edit: this is not to say that the USA should not develop its own semiconductor industry again - the issue there isn't profit, it's supply chain and security, prevention of backdooring or denial by China.
- JonChesterfield 4y agoI was under the impression that TSMC are very profitable and Intel used to be. It has really strong winner take all dynamics.
- throwaway5959 4y agoVery profitable with what margins? You can make a lot of money with a 1% margin on $50 billion in revenue.
- JonChesterfield 4y agoI don't know offhand. Google reckons 42% "net profit margin", but for an industry which leans hard on reinvesting to stay ahead of the competition 'profit' is quite flexible.