China hires over 100 TSMC engineers in push for chip leadership

Re:China hires over 100 TSMC engineers in push for chip lead... by rmrfstar on Wednesday August 12, 2020 @08:02PM (#24138563)

I have this theory, supported by anecdote alone.

In the US there is a "scam premium". The scammier a business, the higher the multiple.

Fabbing is decidedly unscammy. So according to the theory of scam premiums, everything associated with fabbing should trade at a discount.

[ Parent | on HN ]

Re:China hires over 100 TSMC engineers in push for chip lead... by supernova87a on Wednesday August 12, 2020 @09:07PM (#24138983)

Well, maybe another way to put it is that it's a business where the costs and value are absolutely clear. And it's a pure physics/technology catchup business. So margins get competed very thin.

Versus what you call "scammy" industries, where people attach emotional value, social value, network effects, irrational likes/dislikes -- there's a lot of margin that can be milked out of stuff like that.

[ Parent | on HN ]