Comment by lotsofpulp
Comment by lotsofpulp 12 hours ago
> I suspect it's going to be the same here. More expensive CPUs and GPUs are just going to mean more expensive CPUs and GPUs with no real silver lining.
Presumably, higher profits will incentivize other players to enter the market and increase supply, and/or the company earning high profits plows at least some back into R&D to at least create better chips, which can result in eventually lower prices for the previous generation of chips.
This isn’t a possibility with land and land rights, however, so I wouldn’t expect the same dynamics to play out.
Over a long enough time horizon, yeah. Over a long enough time horizon the same happens in land too - we are finally getting decent amounts of infill development in the Bay Area, but it's 15 years after prices started to skyrocket.
Starting a semiconductor company and constructing a few fabs at cutting-edge process nodes takes at least that amount of time, so I'd expect semiconductors to have similar dynamics.