[alt.next] Do we really want one vendor?

james@bigtex.cactus.org (James Van Artsdalen) (10/16/88)

In article <MAGILL.88Oct13193331@eniac.seas.upenn.edu.seas.upenn.edu>, magill@eniac.seas.upenn.edu.seas.upenn.edu (Operations Manager) writes:

> The computer industry needs some new garage builders.

Unfortunately, the price of entry is rather steap these days.  Garage
builders thrive where there is little well-funded competition and
where there is little government regulation.  Neither is the case these
days.

The problem of FCC RFI compliance is I think obvious.  The problem of
VLSI/ASIC needs is more severe.  In order to enter the market at a
lower price, a company usually needs to use higher integration to cut
costs.  But this can be enormously expensive.  Owning your own chip
foundry is out of the question - those foundries cost $200 million or
so (the "stepper motors" that position the wafers within .5 microns at
each step in the process cost $1 million *apiece*!).  If you have someone
else make the chip, you still have design costs.  VLSI design software
costs upwards of $200,000 and doesn't necessarily work very well anyway.
The CAD systems themselves aren't cheap either.

If you plan to build just another PC clone you can buy chipsets from
Intel and C&T, but then none of those work quite right and you have to
fix their bugs in your design and software.  All of this is very time
consuming and expensive.  When competition forces you to be
state-of-the-art, you just can't cut corners the way you could with
the P.E.T. or Apple ][.
-- 
James R. Van Artsdalen      james@bigtex.cactus.org      "Live Free or Die"
Home: 512-346-2444 Work: 338-8789       9505 Arboretum Blvd Austin TX 78759