Or do we seriously expect that US companies will generate significant demand even though TSMC and Samsung are already building heavily subsidized fabs in the US?
Intel says they're going for two factories of 20 bln indeed [1], Samsung for 17 bln in Taylor, Texas [2], and Micron claims to go for 100 bln (over time) in Clay, New York [3].
> Why invest 20 billion dollars [...] to create supply without demand?
Why do we have to pay about 5 dollars per month for a VPS with only 1 vCPU, 1 GB RAM, and 10 GB storage? I'm certainly hoping these specs to all increase 10-fold over the next 10 years for the same price.
[1]: https://www.intel.com/content/www/us/en/newsroom/news/intel-...
[2]: https://news.samsung.com/global/samsung-electronics-announce...
[3]: https://investors.micron.com/news-releases/news-release-deta...
Look at the machine you can build for one months’ typical AWS cost for a medium size SaaS company.
Cloud also charges insanely high rates for bandwidth.
It's quite low, but the real costs are on datacenter space and connectivity anyway, I have no idea what their cost structure looks like.
I would expect any real user to switch into renting servers as soon as small VPSs aren't enough. (But yes, the fact that there is a market of large VPSs tells people don't to that. I don't think I will ever understand this, as I don't understand most people usage of AWS.)
Yes I think so, presuming that there is not an over-supply of capacity.
US companies would much rather rely on an EU country than one that is being threatened with invasion over a small gap of sea. US local supply will never be enough.
Agreed
> US local supply will never be enough.
But you won't just have US supply. You'll have US and Taiwanese supply, and I don't believe that Taiwan will happily let TSMC (the only cutting edge foundry left in the world, when you take Samsungs abysmal yields into account) build foundry redundancy in the western world.
But we'll see, you could definitely end up being right. I just hope we'll invest at least an equal amount of money into chip design.
It's not necessarily about supply and demand. These past few years have shown what shortages of chips can do to the supply chain. It's a strategic vulnerability if Europe does not at least think about this.
On the other hand, if people are trying to build the cutting-edge, there might not be as much local demand since it is probably only needed for the latest IT equipment, most of which is built in the Far East.
Besides, the cost of designs pales in comparison to the cost of producing locally.