Baker explains Google pays Broadcom 50-55% gross margins for back-end TPU design and Taiwan Semi management.
“I think part of that is, so Google, let's say the TPU, so there's front end and back end of semiconductor design, and then there's dealing with Taiwan Semi.”
Baker explains Hock Tan's model is opposite of Dell's: find drained profit pools with no competition, enter, and raise prices.
“Hock's model has always been to find a profit pool that has been drained and there's no competition left, enter that and jack prices up.”