Intel CEO Pat Gelsinger visited Samsung in Korea

[hist78]

From game theory, three way equilibriums are pretty stable, in fact close to the most stable outcome possible short of a total monopoly.

Also spending so much effort to create the same bleeding edge foundry innovations three times already seems slightly wasteful. So it could eventually settle into an Airbus-Boeing type situation.

Semiconductor companies are component producers who design and build chips for smartphones, tablets, computers, or airplanes.

Semiconductor companies' role to the final product integrators is similar to the role of those jet engine manufacturers (Rose Royce, GE, Pratt Whitney) to the Airbus and Boeing. What do you think?

 

[M. Y. Zuo]

Semiconductor companies are component producers who design and build chips for smartphones, tablets, computers, or airplanes.

Semiconductor companies' role to the final product integrators is similar to the role of those jet engine manufacturers (Rose Royce, GE, Pratt Whitney) to the Airbus and Boeing. What do you think?

That’s a good point! The jet engine manufacturers are arguably even more entrenched since the high temperature compressor portion especially of modern jet engines are perhaps the only manufacturing secrets, for non-military production, even more tightly guarded then that of modern fabs.

For example, there‘s a decent chance the new Sino-Russian consortium could build a credible wide-body plane by the end of the decade, which is what Airbus-Boeing have a total duopoly on. But there’s no chance of them doing the same for large jet engines.

Plus there’s a decent chance GE and Pratt will merge, or perhaps Pratt could even throw in the towel for civil engines since the R&D costs are spiralling upwards similar to the semiconductor industry.

Funny how being somewhat knowledgeable about two separate fields come in handy in times like this!