Question: the semiconductor (processing chip) industry has been consolidating due to the increased cost of producing chips due to technological advances. 10 years ago, it cost

the semiconductor (processing chip) industry has been consolidating due to the increased cost of producing chips due to technological advances. 10 years ago, it cost $10,000,000 to design a new chip. now it costs anywhere from $100,000,000 to $200,000,000.

experts say you need to have large scale operations to build your own factories and create these incredibly small products.

why would you expect to see fewer firms in the industry?

use a formula for the maximum number of firms in a market for this industry

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Why we expect fewer firms in the semiconductor industry due to high manufacturing costs Increased barrier to entry The tenfold increase in design cost... View full answer

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