[WJW]

There are definitely benefits to having large companies as well, though. Economies of scale are a real thing for one, and especially in the semiconductor industry the price of modern production facilities (>20 bn per fab) is well outside the reach of any company you could still call "small".

[nicoburns]

There are, but even in these cases there are economic downsides: notably with semi-conductors, risk if any of these big companies fail. I think that if the benefit of scale is so great, then you should be able to prove it by withstanding the higher tax burden.