—among the last remaining large U.S. integrated chip companies—is under pressure from investors to farm out more production and focus on design where it has lost a competitive edge. China, Taiwan, Japan and South Korea account for about 75% of chip manufacturing capacity in part due to their skilled workforce, geographic supply-chain synergies and government subsidies.
Some defense experts understandably worry that China will absorb Taiwan and impose an embargo on TSMC chips, which are used in U.S. fighter jets. China has set a goal of dominating semiconductor manufacturing—it now makes about 15%—and producing 70% of its own supply by 2025. But it is still years behind.
But new plants are expensive, one reason manufacturing has consolidated. Twenty years ago a chip plant cost $1 billion. TSMC is constructing a nearly $20 billion foundry in southern Taiwan. Samsung, which manufactures some chips in the Austin region, is seeking subsidies from some states for a $17 billion foundry. Europe’s leaders have also dangled tens of billions of dollars to boost their domestic industries. This could soon become an expensive bidding war.
Source: News Formal (newsformal.com)
michaelcox1951 opinion The government is in the business of government not chip manufacturing
opinion It might be a good idea because you say its bad, but maybe the article says something else. I will never know.
opinion disagree, if they get in now it'll be cheaper when they chip us later
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opinion Two thousand and late government chip makers...two thousand and late!
opinion Don't you mean - get back into the chip business?
opinion We cannot afford losing this tech competition. It is another war and the fed gov should play a bigger role. It is proven the bigger gov really helps the vaccination campaign. Don’t be tied to the partisan ideology. Do whatever we can do to win the war.
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opinion Texas Instruments did a lot in the semiconductors area. Intel is one of the few US companies making chips.
opinion So prodding TSMC and Samsung to build fabs in NA and Europe is given as a solution but how likely is that to actually happen? If I'm Taiwan and part of my sovereignty rests on the geopolitical importance of my fabs I wouldn't rush to start giving away that leverage.
opinion Such a sign of the times that one of the few areas of bipartisan consensus, or at least substantive overlap, is the economically illiterate idea that markets won't produce the right amount of things without protectionist intervention and government mandates.
opinion Government corrupts, we don't need corrupted Computer Chips. Leave it to the pros.
opinion No we don't want the govt meddling in any biz beyond enforcing some safety & environmental policies. More hands off is best/better.
opinion Wow, he got my mirco-chip
opinion So, no bailouts for market failure or policies to correct supply imbalances? The WSJ just wants us to continue to rely on China as our supplier, I guess. Very pro-China of you, comrades.
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opinion Gov't in the chip business? How do you think Skynet happened? My logic systems inform me this course of action cannot have positive repercussions.
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