Speaker unverified: belief

Transcript context

…Let’s just talk about the iPhone because it’s the one I understand the best. Apple became the aggregator rather than the old days of I’m going to go build my computer, I’m going to go buy a motherboard, I’m going to buy a GPU and I’m going to slot it in the PCI slot, and blah-blah-blah. Apple basically says, well we’ve designed this logic board and we’ve designed most of the chips—the important chips—and we’ve situated them together. TSMC manufactures it. They do all the packaging, so you have the bare metal to bare metal packaging of these things so we don’t need to run it through these buses that have low bandwidth to get information from one piece to another. Let’s keep playing that out a little bit based on everything you know. Where in the value chain do you think the point of aggregation shifts to over time? Who gets to own where do we put all this stuff together? And I get to capture a lot of extra margin because I’m the one putting it all together. I think the interesting thing about the semiconductor ecosystem is actually there’s a lot of people capturing margin, and they’re captioning really high margin. This is the sign of a healthy ecosystem. There’s not one company that’s making all the money throughout the whole chain. We see margins come up. Who has higher operating margins—Texas Instruments or Microsoft? Because I asked it, you know the answer. It’s TI. It’s not really appreciated how good these businesses are. That’s shocking.…

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