Are semiconductor companies going to be the next version of big tech or big oil? I feel like in a lot of ways they are some kind of hybrid version of commodities and technology, especially when it comes to stuff like memory and hard drives. However with the extreme specialization resulting in monopolies/duopolies like INTC/AMD, AMD/NVDA, AMAT/LRCX, QUAL/Samsung, MU/Samsung (RAM), TSMC/NXPI, etc., it seems like they are starting to setup to be more like big tech companies where they have carved out a huge portion or all of the market share and are setup to dominate for decades.
Then add in the fact that computers and chips are being put in everything from cars to toasters, it seems like these Big Semis are going to perform quite well for the foreseeable future with little competition like Verizon and AT&T a decade or two ago.
What am I missing? Semis have been very cyclical in the past, but it seem like they are becoming more of a necessity to building pretty much everything that even a big downturn in the economy wont have nearly the same impact it has had in the past. I feel like l software is much more easily to disrupt compared to designing and fabricating high-end semiconductors, especially the fabrication and component.
Submitted January 24, 2022 at 11:55PM by SharksFan1 https://ift.tt/3Iztkad
