Dear Outsiders,
You may recall a certain Seinfeld episode about chips…
Now, I think Jerry Seinfeld is kind of a hack, but in keeping with my current focus on death and comedians, I’ll share this gem with you. While attending a wake, George Costanza dips a tortilla chip, takes half a bite and then does the unthinkable: dips the same chip into the dip. At that point another mourner named Timmy gives him the business…
Timmy: “What are you doing?”
George Costanza: “What?”
Timmy: “Did, did you just double dip that chip?”
George Costanza: “Excuse me?”
Timmy: “You double dipped a chip!”
George Costanza: “Double dipped? What, what, what are you talking about?”
Timmy: “You dipped a chip. You took a bite. And you dipped again.”
George Costanza: “So?”
Timmy: “That’s like putting your whole mouth right in the dip. From now on, when you take a chip, just take one dip and end it.”
George Costanza: “Well, I’m sorry, Timmy, but I don’t dip that way.”
Timmy: “Oh, you don’t, huh?”
George Costanza: “You dip the way you want to dip. I’ll dip the way I want to dip.”
And considering the computer chip shortage right now, there will be some companies to invest in that you’ll want to buy the dip…
Chip shortages will cost automakers $210 billion in revenue this year, according to consulting firm AlixPartners.
Cars are basically the second biggest investment we make as consumers, aside from our homes. They also run on the most “cost efficient” semiconductor chips. That means cheap. As the Wall Street Journal reported:
In time, the relationship between chip and car makers will get even closer. As vehicles increasingly resemble rolling computers, semiconductors could become a strategic battleground — a bit like batteries are today. The biggest automakers may feel the need to design their own, or at least form deep partnerships.
Other chip makers are also looking for more ways into cars. Qualcomm made a preliminary $4.6 billion offer in August for Veoneer, a Swedish company that sells sensors and software for assisted driving. Veoneer had already agreed to a takeover by Canadian parts supplier Magna International.
The global chip shortage has hit many industries, like computer and video game manufactures. But cars have been hit hard. Ford, Volkswagen, and Daimler have all been forced to completely stop production due to the lack of chips.
That’s because these types of electronics make up around 40% of a vehicle’s value. We’ve come a long way since the basic internal combustion engine. Our cars are computers, and without semiconductors they simply can’t even be produced.
But there is good news. We’re making chips right here in the United States that are far and away the best ones.
So by now, you probably know how important semiconductors are to every aspect of our lives and the economy. One of the major issues that is being ignored in the chip shortage is that the silicon used for these chips is on its last legs. If you’re familiar with Moore’s law — the idea that the number of transistors per silicon chip doubles every year — then you would assume that silicon chips are keeping up that pace.
The fact is they are not. So regardless of how fast companies can produce the current products, they simply aren’t able to keep up with the new paradigm of EV production, video streaming, 5G, and the internet-of-things world that we live in.
That’s why I’m personally investing in a company that has figured out how to revolutionize the silicon chip and has the opportunity to make the chips we’re discussing up to 10 times more powerful than current silicon.
If they’re successful, “Silicon Valley” will be a relic of the past.
None of the semiconductor companies based in Silicon Valley offer a way out of this dead end.
It’s not possible to cram more transistors onto silicon than we already have. Silicon isn’t a reliable conductor when transistors become smaller than five nanometers. The time has come to reinvent the chip.
The off-radar company I’m talking about found a way to manufacture microprocessors with one of the most interesting materials on earth: It’s just one atom thick and has a honeycomb structure that allows for maximum conductivity.
It’s the thinnest material ever found.
It will be more efficient and cheaper than what is currently being tossed about for figuring out this current chip crisis.
This company teamed up with MIT in order to create the perfect chip. It has the backing of the U.S. government. It is going to be the leader in this revolution to totally upend the way we think about semiconductors.
And right now, it is in the perfect position to profit from the current scarcity.
Dip the chip, and check them out right here.
