<Charlie Munger raised this point at the recent Daily Journal Corporation annual meeting on February 15. When asked about the semiconductor industry, he replied:

The semiconductor industry is a very peculiar industry. In [the] semiconductor industry, you have to take all the money you've made, and with each new generation of chips, you throw in all the money you previously made. So it's compulsory investment of everything you want to stay in the game. Naturally, I hate a business like that. ... [N]ow if you're now ahead of it, like Taiwan Semiconductor is, that may be a good buy at these prices. It's not at all clear to me that they're not going to succeed mightily. ... But it's a difficult business and requir[es] everybody to keep increasing the bets on and on with all the money.
>

fool.com - Why did warren buffett sell taiwan semiconductor m