2min chapter

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#59 – Chris Miller on the History of Semiconductors, TSMC, and the CHIPS Act

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CHAPTER

Supply Chain Monopoly - What Are the Driving Forces Behind That?

Many parts of the chip making process are extraordinarily capital intensive. That's true for chip fabrication, where a new chip making facility can cost $20 billion. The specialized knowledge that is involved in a number of key parts of supply chain is something that is learnable only in that segment of the industry. And so that means you're often thinking about new entrants that are founded by someone who's already in the industry and is able to raise a substantial amount of capital.

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