zidane1strife
Banned
And the model may even thrive if the industry opts to abandon Moore's Law.
Only Intel can afford a 300-mm fab, though that hasn't stopped the foundry industry from building such plants, he said.
In the last 10 years, the cost of building a fab has increased sevenfold while the semiconductor industry's revenues have grown fivefold, according to Goldman Sachs. Building a 300-mm, 90-nanometer fab is expected to cost a whopping $4 billion, and each plant must generate $6 billion to $9 billion in sales per year to get the required return on investment (ROI), foundry executives said. No pure-play foundry provider today realizes that much revenue. The world's largest foundry, TSMC, reported $4.66 billion in sales last year.
"The cost of a new fab is absolutely enormous," said Edward Ross, president of TSMC North America. Ross, who cited $6 billion as an acceptable annual sales figure for a 300-mm, 90-nm fab, noted that only five companies in the chip industry have such sales now, and none are pure-play foundries.
http://www.eetimes.com/semi/news/OEG20030317S0012
It seems... like this that was said is... but innevitable to occur...
EDIT
"Moore's Law is not driving the industry anymore," he said. "It's economics."