So, the long and short of it is that we are getting to the point on the profitability curve where if a company hasn't already made the very large investments needed to stay competitive over the next few years, they are out of business. Its is clear to me that KNC, so far, has made all the correct strategic moves to ensure that they are a leader in this market for the foreseeable future.
Completely disagree. I think they are shooting themselves in the foot by going with a die shrink to 20nm instead of improving their design.
Completely disagree with you. They aren't going with a die shrink, they are improving their design and building it on a 20nm process.
This will provide the foundation for continuous future evolution via die shrinks of their products without additional large capital investments of the sort Neptune required. As mining profitability shrinks into the single digit % ROI, its going to be very hard for equipment companies to invest large sums in future R&D. Now is probably the last window of opportunity for major re-designs of equipment. KNC knows mining and they did the right thing at the right time.