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Near as I can tell, because of the nature of the chip business, there is a limit on how fast they can pivot production towards a market segment that is seeing i
by drcode 3y ago
Near as I can tell, because of the nature of the chip business, there is a limit on how fast they can pivot production towards a market segment that is seeing increasing demand (in this case, the AI chip business)
So even assuming that there theoretically are enough purchasers of AI chips available to offset their other lost demand, it will take a year or two before they can fully serve these new customers and collect this revenue.
- andy_ppp 3y agoYeah I was thinking something along the lines of, we have factories setup to produce AMD CPUs on 4nm for 6 months, another setup for Apple etc. and if say Apple reduces its demand TSMC can’t magically turn the AMD or Apple (etc.) setups into Nvidia GPUs that quickly. Also NVidia probably benefits from some scarcity so it might not be worth their while to order more?