Comments on: Chips http://www.yazadjal.com/2004/09/22/chips/ Mon, 13 Oct 2008 06:16:26 +0000 http://wordpress.org/?v=2.0.1 by: Quizman http://www.yazadjal.com/2004/09/22/chips/#comment-2029 Tue, 30 Nov 1999 00:00:00 +0000 http://www.yazadjal.com/2004/09/22/chips/#comment-2029 It is a question of "network effects" and "added value" (not value-added). Not considering peripheral services like branding, conferences, research etc, the value chain would be: Potato chips ============ Chemicals=>Fertilizers=>Farmers=>Manufacturers=>=>Distribution=>Consumer=>Manure=>Municipality=>Praja.org=>Yazad jal Silicon Chips ============= Chemicals=>Manufacturers (designers) ==>Manufacturers(Foundry)=> OEMs =>Consumers=>Manufacturers(home office, small business, software applications, appliances) => Consumers => potential infinite loop between consumers and manufacturers. The benefits of network effects and added value is much more in the case of computer chips. It is a question of “network effects” and “added value” (not value-added). Not considering peripheral services like branding, conferences, research etc, the value chain would be:

Potato chips
============
Chemicals=>Fertilizers=>Farmers=>Manufacturers=>=>Distribution=>Consumer=>Manure=>Municipality=>Praja.org=>Yazad jal

Silicon Chips
=============
Chemicals=>Manufacturers (designers) ==>Manufacturers(Foundry)=> OEMs =>Consumers=>Manufacturers(home office, small business, software applications, appliances) => Consumers => potential infinite loop between consumers and manufacturers.

The benefits of network effects and added value is much more in the case of computer chips.

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