Eli5: Why are there only two competitors in the comercial GPU (AMD/Nvidia) and CPU (AMD/Intel) market? Does this phenomenon also happen in other parts of large scale industry?
In: 2
*ARM (and their licensees) executives shrug as they look at their billions…*
Chip manufacturing is a natural monopoly, or in this case oligopoly. The barriers to entry at this stage are insurmountable with the lack of outside access to specialist manufacturing facilities and licenses to designs. Mergers and buyouts are mutually beneficial to David and Goliath (but not the customer) so many have been passed without the competition commissions of various countries intervening.
ARM was going to be bought out by Nvidia, but government intervention stopped it.
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