Memory chip manufacturers (three dominant players) have extremely high barriers to entry due to accumulated patents, engineering talent, manufacturing process knowledge, and irreproducible 'black magic' in fab operations; even with all resources available, replicating a downed fab is uncertain, making the three incumbents insulated from competition and able to allocate supply and raise prices dramatically.
causalpending
Speaker
Monish PabraiEvidence Quote
“There's a lot of barriers to entry for a fourth player to come in. All the patents and scale and everything... We're not sure we can get the same throughput out of it. And he said because there's a part of this business that's black magic.”
Created: 8/12/2026, 6:21:10 PM
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