That’s a good point. And also helps explains why they made the emphasis on consumer market etc.
Seeing this and similar news, this feels a bit like an elephant in the room situation tbh they’re pointing at all the signs of something but still ignoring the big obvious things, wtf?
Yeah, I think the elephant in the room is that the industry is going to suffer when you cut it off from one of the biggest consumer markets. Also, it turns out that chip making industry is particularly vulnerable to drop in demand because chips become obsolete within a few years, and you can’t reuse existing production facilities to make new chips. So you have to make these huge investments of 10s or 100s of billions to make new facilities that will only be used for like 5 years or so. This only makes sense to do if you can move huge volumes of product in that time. This article does a great job explaining the dynamics.
And as a result we’re already seeing companies starting to adapt by focusing on making older chips that they can sell to China as NVIDIA is doing here.
yep, and in the pursuit of profit by dropping the lower $/unit ICs for the ones which mostly go out of date much faster.
imo the industry has been slowly doing this to themselves for a while, but the pandemic accelerated it. and then ofc the bs politics just makes a mess of it
That’s a good point. And also helps explains why they made the emphasis on consumer market etc.
Seeing this and similar news, this feels a bit like an elephant in the room situation tbh they’re pointing at all the signs of something but still ignoring the big obvious things, wtf?
Yeah, I think the elephant in the room is that the industry is going to suffer when you cut it off from one of the biggest consumer markets. Also, it turns out that chip making industry is particularly vulnerable to drop in demand because chips become obsolete within a few years, and you can’t reuse existing production facilities to make new chips. So you have to make these huge investments of 10s or 100s of billions to make new facilities that will only be used for like 5 years or so. This only makes sense to do if you can move huge volumes of product in that time. This article does a great job explaining the dynamics.
And as a result we’re already seeing companies starting to adapt by focusing on making older chips that they can sell to China as NVIDIA is doing here.
yep, and in the pursuit of profit by dropping the lower $/unit ICs for the ones which mostly go out of date much faster.
imo the industry has been slowly doing this to themselves for a while, but the pandemic accelerated it. and then ofc the bs politics just makes a mess of it