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What other industries? People make value arguments but these are incredibly naive. Look at the companies with the top market caps. They'd tumble if TSMC or ACM
by godelski 2y ago
What other industries?
People make value arguments but these are incredibly naive. Look at the companies with the top market caps. They'd tumble if TSMC or ACML went under.
So there's something else to how price gets defined. Be careful to think the status quo is "rational". Sure, there's an explanation but an explanation is not a good explanation. Usually it's a simple explanation to an incredibly complex topic which no one really can explain
- logicchains 2y ago>Look at the companies with the top market caps. They'd tumble if TSMC or ACML went under. No they wouldn't because their competitors would be in the same situation as them. If nobody has advanced chips, nobody has a competitive advantage.
- ben_w 2y agoNever mind "competitive advantage" — if nobody can make cutting edge chips, most (or all?) of them no longer have a product to sell.
- godelski 2y ago> because their competitors Would also tumble Why do you assume they must survive? Here's an analogy: if the food stops growing, everybody dies. That analogy is a bit extreme but at this time Intel (who just laid of 20% of its staff) and Samsung are the only meaningful competitors and TSMC produces the lion's share of chips. If TSMC goes under Apple, Nvidia, Microsoft, Google, and Meta are all also going to tank too. Those companies don't really have competitors. It's highly centralized and yes I know that AMD exists and they'll tank too