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IL10: Chip War (FT's Best Business Book 2022) ft. Chris Miller

Top Traders Unplugged

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How Did We Get to This Complex World of Integrated Supply Chains?

The process of moving from four transistors per chip in 1960 to 15 billion or so today has required extraordinary specialization. The key driver of the dynamic of having choke points is just a production process that is very, very difficult to find a way around. And companies have only been able to produce silicon that is 99.999% pure by focusing solely on the process of purifying silicon and the same thing is true for all of the other steps. So we've needed that precision enabled by specialization but the effect of it has been to leave expertise in each part of the production process in the hands of just one company.

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