Chinese semiconductor industry
- Thread starter Hendrik_2000
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I remember I read it 6 months ago... why did they repost it?
Given that it says “set to unveil” then it is probably a refresher for their viewer base who doesn’t follow the semi industry before it is officially revealed.
Once they got the data and understood the industry at a granular level, it became very easy for them to tailor the restrictions in ways they think will hurt China the most.
They are demanding too much.
TSMC will invest of their own money like 50 billion in the Arizona Fab, a fab that maybe will be not as profitable as their Taiwanese fabs, in exchange will receive 2 billion from the Chips act, there could the case the US goverment demand on IP and they will be locked to invest in fast growing market like China for 10 years. The same goes for Samsung and other Asian players.
I personally fail to see the benefits.
Indeed. If I’m tsmc or Samsung I’d rather not take the restriction-ladened subsidy from Uncle Sam. The small amount of subsidized money is not worth all the strings attached.
Morris Chang already confirmed that the Arizona fab will be 50% more costly to operate. I am guessing that is a politically correct understatement, and we are looking more at 100% - 150% more costly to operate. That's not to mention the construction delays.
It's a poison pill and they likely are not being given a choice as to whether to take the money or not.
I could understand no buybacks and even buy American clauses but the others restrictions are not palatable.
Doesn't matter. The companies involved don't have a real choice.
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