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I'm aware, but I'd argue that in addition to the competitive moats described by Hamilton Helmer (7 powers guy) there is a real moat in unique technological expe
by wolframhempel 3y ago
I'm aware, but I'd argue that in addition to the competitive moats described by Hamilton Helmer (7 powers guy) there is a real moat in unique technological expertise in the chip industry. E.g. the chip making machines that ASML makes or the 3nm chips that TSMC produces have reached a level of sophistication that will take 3+ years for competitors to replicate, thus granting them a sort of quasi monopoly for the foreseeable future.
- huijzer 3y agoI‘s say those are covered by Helmer with scale power. Spending millions on tiny process optimizations or other research is possible due to the large revenue streams that are coming in. For example, in terms of scale economies, only when you sell thousands high end GPUs per month you can hire people to write highly optimized compilers.
- wolframhempel 3y agoMaybe - though I think it's more of a cornered resource. You have specialized knowledge that attracts specialized people which create more specialized knowledge. Creates a sorta feedback loop.