I love how “we can’t make chips in the US anymore it’s impossible” was something we heard only a few years ago.
I guess that was before supply-chain security became important and the only consequence was the people that dont matter losing their jobs.
I find it unfortunate that we are going back into a partitioned world but let's hope it brings competing ideas at least. I'm even a bit excited about it, as long as it stays a cold war and doesn't turn into WW3 and stays as a competition in everything like during the cold war.
That’s a bad read of the situation. It’s not like no one makes chips.
The reasons people cite for why manufacturers don’t come to America are largely political. The reality is that manufacturing is alive and well but those with industry knowledge aren’t American, and America has most left low margin and high labor manufacturing not all manufacturing. In this case, America is literally paying the Taiwanese to bring their knowledge to America.
Is the world collapsing? No one knows but this can be more easily seen as “vertical integration” of a national economy. No one said Samsung was doomed when apple made their own mobile chips, and there’s no reason that the global economy is doomed just because the richest and most powerful economy in the world wanted a strategically important, high margin business.
- TSMC will never build-out in the US
- And if they do it will only be older nodes
- And if it's not just old nodes then it's only because subsidies.
Now that it's actually happening we see cop outs, like "yeah but ?nm will be obsolete by the time it's built."
Tsmc is not coming here because it's an economically wise move. They are coming here knowing it's an economically irrational move.
Politics is the reason for this move. It is not a clear cut win.
Your post has the aroma of patriotism. Patriotism blinds us to harsh truths. Why do you love how people were wrong when they said we can't make chips in the US anymore? You shouldn't feel love or hate for any of these statements.
Taiwan subsidized tsmc for tech. Once the tech was established the subsidy ended.
Right now the US is subsidizing tsmc for simply switching locations. Once the location is switched the economic output of this plant will be negative so the subsidies have to remain.
The US chip market is not capable of making competitive chips. Not without economic assistance. This is categoric fact.
No, it's an economically wise move because of the politics. This plant allows TSMC to gets the CHIPS subsidy, but maybe more importantly it allows them to become part of the military industrial complex which requires that products are made domestically. This fab will print money.
You are definitive about defense spending in a recession. This is wrong. Aspects of the government will begin pulling back. We do not know how this will effect tsmc.
This move from a profitablity standpoint is break even as far as we know. It makes no economic sense.
Btw. This isn't something I'm making up. The CEO of tsmc mark liu stated this to Nancy pelosi during her visit. Also her husband is dumping tsmc stocks for unknown reasons.
Defense spending never goes down. It's a key way the government injects money into the economy during recessions.
> The CEO of tsmc mark liu stated this to Nancy pelosi during her visit
Every CEO tells politicians to give them more money, that isn't evidence of shit other than being competent.
Interest rates will increase spending will be pulled back to stop inflation. A recession is the tool being used to stop inflation.
The CEO did not ask for money. The money was already given. The CEO was simply stating the status quo. Helping her come to terms realistically with what is truly going on with the Arizona plant. Look it up.
It's not useless, it's all about power projection. When you go to rob a bank and take a gun with you that you will never use then you don't call that gun useless because thanks to projecting your deadly power with it you were able to successfully rob the bank.
The United States has had around 20 years of peace since the Declaration of Independence was signed in 1776.