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Politics : Formerly About Advanced Micro Devices
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To: Scumbria who wrote (112751)5/25/2000 3:10:00 PM
From: tejek  Read Replies (1) of 1574023
 
Scumbria,

Energy costs reflect in every other sector. Everything needs to be manufactured and/or transported. All business costs are directly or indirectly affected. My travel expense has skyrocketed this year because of increased airplane fares. This affects the cost of the microprocessor development, which affects the cost of the products which the processor is used in.

Its just not oil that is driving up costs.....wages and wage benefits have played a significant role in the last 6 mos. And oil is not responsible....the tightening labor markets are. In most markets all who can be trained and are employable have been employed. There is a premium on labor that seems to be only partially offset by productivity gains.

When you have first silicon, do you expect it to run smoothly at top speed levels? No, you have to tweak it. That's all the fed is doing right now....its tweaking the economy.

I would never dream of taking a fast microprocessor design and slowing it down, because I was afraid that the high performance was somehow unhealthy. I guess that I think differently than the Fed.

I didn't say you tweak silicon in the same way you do the economy. Silicon is a tangible substance subject to the laws of gravity. The economy is more abstract and much less tangible; making it much more difficult to work with. There seem to be fewer options.....slowing it down is one of the big ones. How much slower is the key.

"If this is really true, then I think SV will lose its edge and some other place will take over.....its always about the learning IMO."

Somehow I can't imagine SV losing it's edge. People come from all over the world to work here, by the hundreds of thousands.

And I bet they said the same thing in Boston circa the early 80's. Nothing is forever. I believe SV had its own missteps in the mid to late 80's.

If what you descibe is true, SV could well lose its leadership in the tech world. There other parts of this country that have all the infrastructure requirements of SV and are better looking. While its true SV has the lead, that lead could well be lost if it becomes all about the $ and not the innovation.

ted
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