David Rosenthal: belief

Transcript context

…Sometimes we talk about branding. I think we’re talking about none of those this time. Yeah. We sometimes talk about scale economies, which we’re going to definitely talk about here. But I think we’re going to have our first process power if I’m going to forecast, but let’s start. Let’s go down the list. Counter-positioning. When they were starting, and in particular, would the incumbents have started with the exact business model? No, because their profit center was the integration that all the margin you get of integrating design and manufacturing. By saying, nope, we’re going to be a pure-play manufacturer, TSMC theoretically was saying, no, we’re going to take less gross margin and we’re just going to make it up in volume. I’m actually not sure it played out that way. Do you know what Intel’s gross margins are?…

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