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I think it makes sense in the semiconductor industry given the economies of scale required for profitability. Unlike heavy industries, though, startups can still emerge because you can simply contract out production (fab and back end) at competitive rates and stay independent or sell to a bigger player anywhere in the evolution of the company.

Other than the issues that have come up with privacy and copyright (not to be ignored obviously) it isn't an industry prone to natural monopolies versus say anything infrastructure related like power and telecom.

you are the media you consume.

by MillMan (millguy at gmail) on Thu Apr 7th, 2016 at 02:19:41 PM EST
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For an industry not prone to natural monopolies (which is certainly true), it has done not too bad in that department: Intel & Qualcomm come to mind. And yes, I've been in this industry before: back in the nineties and the aughties, there were a lot of chip making startups created every year, thanks to the foundries like TSMC or UMC.

Today, the giant foundries are still there, but the "silicon" startup have dried up. And as an equipment designer, your choice of chip set platforms keeps shrinking, even in supposedly "hot" sectors like Wi-Fi...

by Bernard on Thu Apr 7th, 2016 at 03:45:53 PM EST
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