Comment by sshine

Comment by sshine 2 days ago

1 reply

> the cost of parts definitely has risen in the same tiers if you look over a long enough period

This is especially apparent if you’re a hardware manufacturer and have to buy the same components periodically, since the performance increase that consumers see doesn’t appear.

bigbadfeline a day ago

> if you... buy the same components periodically... the performance increase that consumers see doesn’t appear.

Good point and that should properly be called inflation in the semiconductor sector. We always have general inflation, but the different sectors of the economy exhibit different rates of inflation depending on the driving forces and their strength.

As of today, tariffs are the major driver of inflation and semiconductors are hit hard because the only high-volume, reasonable quality/price country has been practically excluded from the the US market by export bans and prohibitively high tariffs - that's China of course.

The other producers are in a near monopoly situation and are also acting like a cartel without shame or fear of law... which isn't there to begin with.