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Monopoly capitalism could slay high-tech electronics

Posted: 26 Feb 2015 ?? ?Print Version ?Bookmark and Share

Keywords:high-tech electronics? monopoly? capitalism? oil industry? OPEC?

Even if U.S. wishes to export its oil to rest of world, the fracking technology is still not as cost competitive enough to compete with the abundant supply of oil from OPEC monopolies. European shale dream is dying before it started. A 2013 report from the U.S. EIA projected that Romania held the fifth-largest unproved wet shale gas estimated reserves in Europe (trailing Russia, Poland, France and Ukraine). This is an example of monopoly killing technology and evidence of how monopoly capitalism in oil industry is able to stop the growth of new fracking entrepreneurs in U.S. in order to retain their share of market by unfair means.

Moore's law and monopoly

Now, whether this can happen to the high technology industry? If you watch closely, the profitability of semiconductor industry has been driven by means of mass production. There has been steady growth in corporate profits and steady progress of Moore's law with ever increasing sizes of wafers since 1965. Today, global semiconductor industry is coming to a standstill when it comes to progress of 450mm silicon wafers. As explained in an article I authored on Semi.org article, due to the poor consumer demand in economy, major players in this business do not expect to reap significant returns from their huge capital investments. This is because of monopoly capitalism. The consumer purchasing power of majority in the U.S. economy has shrunk because of the transformation of U.S. economy from a free market enterprise to monopoly capitalism.

Some of major players in global semiconductor business are concerned that their investments for transitioning to 450mm diameter wafers would not yield any significant returns. This could turn out to be one of the causes for money to remain inert or unutilised in this capital-intensive business. As a result of above policies, money in the economy would become immobile or inert; consequently, there would be no investment, no production, no income, and hence further reduction in consumer purchasing power.

Monopoly: Not a game for high-tech electronics

The situation potentially could become so dangerous that there would be very few buyers to buy new electronic goods. This macroeconomic analysis explains why macroeconomic reforms have become critical for transition to 450mm diameter silicon wafers to ensure that money does not remain inert and it keeps circulating in the economy in order to keep increasing the consumer demand for the latest and greatest electronic products.

Without above proposed macroeconomic reforms, progress of Moore's law seems impossible and the chances of the U.S. economy transitioning from a great recession to a depression seem inevitable. Hence, if monopoly capitalism is permitted to continue in high tech sector, there's a chance that monopoly could, indeed, become the assassin of the high-tech sector.

- Apek Mulay
??Mulay's Consultancy Services


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