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Linear Technology, Maxim Integrated: The Other Lucrative Niche in Semiconductors

There must be more to it. If it was easy to make 70% gross margin on a 20 transistor chip, they would have more competitors.

I looked at this link

Top 10 Semiconductor Stocks?source=more_aut...

And they compare quite well. These are not great time for semi's but it is clear that the chip market is getting better. These companies do well because they sell chips based on innovation. While some markets may have taken off, if there is no need for innovation the chips used are commodity and have little profit.

Basically, I like a strategy of innovation rather than "how cheap can I sell it". It may have slower growth but it has few big declines and does not whipsaw the employee's or investors.