Andrew Homan & Chris Miller - Redefining Semiconductor Progress - [Invest Like the Best, EP.396]
Episode publishedPodcast: Invest Like the Best with Patr...Invest Like the Best with Patrick O'Shaughnessy
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2 fun facts about our newest sponsorship partner, Ramp. 1st, they are the fastest growing Fintech company in history, reaching a level of revenue in 5 years that I can't quote exactly, but is eyebrow raising. 2nd, they are backed by more of my favorite past guests, at least 16 of them when I counted, than probably any other company that I'm aware of. A list that includes Ravi Gupta at Sequoia, Josh Kushner at Thrive, Keith Raboy at Founders Fund and Khosla Ventures, Patrick and John Collison, Michael Ovitz, Brad Gershner. The list goes on and on. These facts demand the question, why? Having be
Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own opinions and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Positive Sum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc.
My guests today are Andrew Hohman and Chris Miller. Andrew has spent 2 decades at Maverick Capital and is a managing partner at Maverick Silicon, where he leads the firm's technology investments. Chris is a professor at Tufts and the author of the New York Times bestselling book, Chip War, which details the geopolitical battle to control the semiconductor industry. Today, we get into a comprehensive discussion on the semiconductor ecosystem and the silicon backbone of our digital age. Andrew and Chris share insights on how venture capital is navigating this complex industry and what it means f
So I guess maybe to kick it off, I was at an event last week with the Global Semiconductor Alliance and this topic came up and someone asked what film genre would you describe in terms of what is happening at Intel right now? Is it a horror show? Will it end as a romantic comedy? And I'm not exactly sure what term I would use to describe that right now, but someone from the company got on stage and his comment was, I would describe it as a Hong Kong action film, which is probably a pretty good example of explaining the state of play right now there, and I think there's a lot of moving pieces.
I think they illustrate how hard it is for a very successful company to pivot to a new business because Intel's problems, in my view, are actually a function of their success. They were too successful in producing chips for PCs, too successful in data center for a long time and it made them risk averse and hesitant to invest in new products. They missed the mobile revolution. Famously, Steve Jobs asked them to produce chips for the iPhone. They didn't do it. And now they're struggling with AI because it was always a huge risk to try something new.
Why does this happen? I know that's the reason I've read The Innovator's Dilemma like everybody else. I understand juicy existing profit streams. But also, this is so well documented across business history, especially in technology. These are all very smart people running Intel with lots of experience. Why don't they just say, we're not gonna fall prey to this specific kind of disruption, and we're willing to do what it takes, including betting lots of our free cash flow or whatever, to not lose this way again because we know this is the way companies like us lose.
I think it's painful for institutions and for individuals to actually embrace the innovator's dilemma because it means you have to sacrifice the products that you made your career on. You have to promote people from different business streams who are working
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