The Mount Everest of Capital Investment: Understanding the huge barrier of entry in the semiconductor fabrication industry
The economy drives the market. Where there is demand, there will be someone supplying that demand. Industries exist to turn a profit due to that demand. The electronics industry is huge with so many competitors on every level, with so many products ranging from heavy appliances like air conditioners, refrigerators, washing machines, to small and sleek gadgets like smartphones, earbuds, smart watches and the like. All these electronic goods have a never ending demand, so much so that the industry is facing issues in meeting it. All of these appliances have one thing in common: they all run on semiconductors. "Well just make more semiconductor manufacturing plants", will be your first thought; if only it was that simple. The semiconductor industry manages to find itself in quite a unique position, the ecosystem surrounding it is a tremendous interdisciplinary and international achievement. The raw materials and equipment required for running one fabrication plant on a commercia...