[HN Gopher] Intel's future now depends on making everyone else's...
       ___________________________________________________________________
        
       Intel's future now depends on making everyone else's chips
        
       Author : feross
       Score  : 235 points
       Date   : 2021-10-20 16:16 UTC (2 days ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | ant6n wrote:
       | Intel just reported earnings, and is down 10% in pre-market
       | (ouch). It seems the market did not like the soft pc sales
       | numbers.
       | 
       | https://www.anandtech.com/show/17027/intel-reports-q3-2021-e...
        
         | kfprt wrote:
         | I'd bet PC sales are down because of the lack of GPU's. Mining
         | hurts the rest of the industry because they aren't selling as
         | many high end MOBO's, CPU's, cases, etc etc. Sounds like they
         | need to twist arms to preference PC's over mining.
        
           | katbyte wrote:
           | Apple is no longer using their cpus in every MacBook and Mac
           | mini.
        
             | kfprt wrote:
             | Apples PC market share is pretty minuscule.
        
         | simonh wrote:
         | That's weird, the linked page shows them significantly up, and
         | Google shows them storming it at $56.
        
           | bwlg wrote:
           | At the top right of the graph you can see that it's currently
           | around 9% in the minus in the pre-market.
           | 
           | A lot of sites don't update the graph for pre-market
           | movements and only show price movements from when the market
           | is open. On yahoo finance you can see pre-market movements if
           | you open the full-screen graph (simply click the graph or
           | click "full-screen" on mobile).
           | https://finance.yahoo.com/quote/INTC?p=INTC&.tsrc=fin-srch
        
       | mhh__ wrote:
       | They are currently basically one of at most a handful of people
       | who can do that. They need to face the music _and_ get their
       | elbows out; now is a good time.
        
       | DeathArrow wrote:
       | Meanwhile the Chinese are trying very hard to come up with their
       | own EUV tech to overcome US imposed bans.
        
         | DeathArrow wrote:
         | More context: https://techtaiwan.com/20210609/huawei-duv/
         | https://inf.news/en/tech/ede38b11c0c375aee90b2451f5c0da3e.ht...
        
         | madspindel wrote:
         | It took Europe 20 years to come up with EUV
        
           | HPsquared wrote:
           | It won't take 20 years to catch up.
        
             | rvba wrote:
             | Spies will steal the designs?
        
             | xadhominemx wrote:
             | It probably will, actually
        
           | rowanG077 wrote:
           | This is a meaningless statement. It took humanity thousands
           | of years to come up with calculus. Now we teach the basics to
           | high schoolers.
        
             | mschuster91 wrote:
             | > It took humanity thousands of years to come up with
             | calculus.
             | 
             | Depends on how you see it. During most of humanity's
             | existence, we were hunters and gatherers, with simple and
             | small societies - there wasn't much need for advanced math
             | and there was not really a possibility for a society to
             | feed a thinker. Only when complex societies like ancient
             | Greece and Rome were possible thanks to early
             | industrialized farming, there was a possibility for people
             | to do nothing "productive" towards the society itself
             | surviving but instead invest resources into advancing
             | society.
        
               | adrianN wrote:
               | Ancient Greece was thousands of years ago. Some complex
               | societies are even a bit older. For example the Assyrian
               | empire started around 2600BCE, and I guess there are
               | older ones still.
        
               | ido wrote:
               | Alexander the Great is roughly as distant from our time
               | as the building of the pyramids were from his.
        
           | m0zg wrote:
           | And thanks to all that effort the Chinese now likely have all
           | the blueprints. The only reason why they still don't have EUV
           | is because this stuff is difficult to bring up even if you
           | have all the documentation - screw something up even a
           | little, and it's not going to work. But it certainly isn't
           | going to take them 20 years to replicate it.
        
             | gostsamo wrote:
             | At the time I worked for an ASML contractor, the joke was
             | that the chinese already have all the ASML code, just they
             | couldn't compile it. This sounded so true, because the ASML
             | code is the worst pile of c built over almost 40 years that
             | the world has ever seen and because the chinese were rather
             | blatant in their attempts to steal whatever they can from
             | ASML.
        
               | mhh__ wrote:
               | > the chinese were rather blatant in their attempts to
               | steal whatever they can from ASML.
               | 
               | Any stories you have (and are allowed to) tell?
        
               | gostsamo wrote:
               | Not personal, but chinese agents would wait in front of
               | the ASML buildings and target ethnic chinese workers
               | offering them money and honor if they come back to the
               | motherland and work there. Stories about stolen laptops
               | and so on.
        
             | jillesvangurp wrote:
             | The nature of patents is that it is mostly public
             | information anyway and free to use after the patents
             | expire. That works both ways of course, the Chinese have
             | some pretty fancy technology in other fields that
             | manufacturers in the EU or US might benefit from.
             | 
             | Of course with chips, patents and know how that e.g. Intel
             | or ASML have are two things.
             | 
             | Ultimately this is good as it drives companies to continue
             | innovating. Intel's current problems are related to them
             | forgetting to do that.
        
               | m0zg wrote:
               | Precisely. A billion ways to get things wrong, and if you
               | get it wrong it doesn't work. And the info to get it to
               | work is unlikely to be in the patents. You have to have
               | folks who worked with this stuff before, which is
               | difficult, but doable.
               | 
               | And as far as "innovating" in this field, we're almost at
               | the end of the run - there are, as far as I'm aware, no
               | processes planned beyond 3nm, and even 3nm is
               | astonomically complex and expensive.
        
               | 988747 wrote:
               | >> patents and know how that e.g. Intel or ASML have are
               | two things.
               | 
               | Shouldn't that make the patent invalid? I thought the
               | requirement is that the patent should give enough info so
               | that "person skilled in the art" can reproduce the
               | invention.
        
               | swiftcoder wrote:
               | "skilled in the art" is somewhat irrelevant if that skill
               | takes a couple of decades and a $120 million machine to
               | develop...
        
             | scyzoryk_xyz wrote:
             | This reminds me. I have an anecdote from my 90-something
             | year old uncle who coordinated and managed construction
             | efforts for the power grid in a post-WWII socialist-bloc
             | country between 1940-1990. At first they relied on the
             | blueprints left behind by Germany, and then they sourced
             | their power generators and components from the USSR. But
             | within several decades, it became clear that the USSR stuff
             | is just bad. Like straight up unreliable and faulty bad. So
             | the question became about whether to build their own, which
             | the engineers were very confident they could do. Although
             | it _seemed_ feasible in principle, after many years of
             | failures it just turned out that manufacturing these things
             | was way too difficult to do reliably domestically. They had
             | underestimated the entire intellectual investment
             | necessary. Buying from the West, from manufacturers with
             | decades of experience became the only option. And this was
             | a long time before the iron curtain even started to
             | collapse. And this was a process managed by socialist
             | /communist loyalists. They were buying tech from the West
             | while still projecting an image of strength and control.
             | 
             | Regimes trying to copy something strongly reminds me of
             | that anecdote. They usually manage to waste a lot of
             | resources only just barely catching up, copying, and then
             | they still end up buying the stuff that works from the
             | companies that have the decades and the experience doing
             | it.
             | 
             | Making this chip tech sounds orders of magnitude more
             | complex.
             | 
             | Reading the article I only think about what a major fumble
             | it was geo-strategically that the people with good ideas
             | went to Taiwan.
        
           | MangoCoffee wrote:
           | >It took Europe 20 years to come up with EUV
           | 
           | "The U.S. Department of Energy (DOE) has announced an
           | agreement with ASM Lithography (Einhoven, Netherlands) that
           | would allow the company to participate in the extreme
           | ultraviolet (EUV) lithography development effort now underway
           | in Livermore, Calif."
           | 
           | https://www.eetimes.com/u-s-gives-ok-to-asml-on-euv-effort/
           | 
           | EUV is a joint research by US Dept of Energy and several US
           | companies. ASML got invited to join the research based on
           | conditions lay out by US Dept of Energy.
        
         | throaway46546 wrote:
         | EUV?
        
           | Semaphor wrote:
           | https://en.wikipedia.org/wiki/Extreme_ultraviolet_lithograph.
           | ..
        
       | Animats wrote:
       | This makes sense, because of the move to application-specific
       | ICs. Products used to be generic ICs on custom boards. That's
       | shrinking to a single application-specific IC. You can usually
       | get all the transistors you need for a product onto one
       | application-specific part. But that part will not be a commodity.
       | 
       | Much of this is semi-custom. You plug together a few pre-defined
       | CPU cores, a GPU, a video decoder, some software defined radios,
       | etc. and you have a phone.
       | 
       | Having more fabs in more locations is a good thing, for
       | robustness.
        
       | PedroBatista wrote:
       | It looks like everyone is opening a fab in the next couple years
       | ( for many reasons, one of them is political ) so I would guess
       | in the next couple years ordering chips will be "cheap" because
       | most fabs are desperate to recoup at least some of the gigantic
       | investment and margins will be razor thin.
       | 
       | So my guess would be in the next decade, the real money will be
       | on the design and IP not the manufacturing. ( excluding the
       | bleeding edge half-a-nm stuff )
        
         | dragontamer wrote:
         | Everyone is opening a fab, but it only "counts" if you in fact
         | succeed at making the chips. Otherwise, you've only spent $5
         | billion on a failure.
         | 
         | Intel has fallen behind because it failed to deliver its 10nm
         | (now called 7nm) process in 2015. Intel tried-and-tried, but
         | failed, to the point where supercomputers (ie: Aurora) were
         | delayed because of the manufacturing mishap.
         | 
         | Just because everyone is __planning__ to open a fab doesn't
         | mean that they'll be successful at it. If Intel fails to reach
         | 5nm (TSMC-name), then TSMC will win.
         | 
         | In fact, TSMC has already started making 5nm chips called the
         | Apple M1 Pro.
         | 
         | ---------
         | 
         | Intel has finally delivered 10nm, but they were 5 years late.
         | If it takes another 5 years to deliver their version of 5nm,
         | then TSMC will be at 3nm by the time Intel reaches 5nm
         | 
         | -----------
         | 
         | Its all about manufacturing actually. All of these chip designs
         | can be ported over to different manufacturers, so long as the
         | different manufacturers are __CAPABLE__ of implementing the
         | designs.
        
           | davidw wrote:
           | > TSMC will win.
           | 
           | Absent any geopolitical difficulties... but that's a whole
           | other discussion.
        
             | diroussel wrote:
             | And climate issues. Taiwan is suffering from drought in
             | places, and TSMC hasn't been able to meet their water
             | saving goals.
             | 
             | It takes a lot of water to make the ultra pure water needed
             | to wash the wafers. Without access to lots of water they
             | will too will have issues.
        
               | davidw wrote:
               | There was an interesting thread about this in the past if
               | someone wants to dig it up, because offhand, a lot of us
               | were a bit perplexed by the notion of Taiwan having water
               | difficulties, and Intel building in Arizona, which is not
               | known for an abundance of water.
        
               | dragontamer wrote:
               | Arizona solves the issue of a hypothetical PRC attack on
               | the island of Taiwan.
               | 
               | PRC will have enough military strength to attack Taiwan
               | and challenge US Carriers. We don't know if they'd win
               | but... enough strength that they're a real threat... at
               | least near China (with assistance from land-based
               | hypersonic missiles and whatnot). PRC probably doesn't
               | have the military strength to attack Arizona.
        
               | davidw wrote:
               | Sure, but the question was about water.
        
               | dragontamer wrote:
               | The question may have been about water, but the
               | geopolitics are about a hypothetical attack from China vs
               | Taiwain.
        
               | codedokode wrote:
               | I think geopolitics is about US wanting to have control
               | over chip production (being able to start or stop it,
               | being able to ban certain countries and companies from
               | getting access to the latest technology). I doubt
               | conflict between China and Taiwan means anything here.
               | China is not going to attack Taiwan which has US support.
        
               | dragontamer wrote:
               | > China is not going to attack Taiwan which has US
               | support.
               | 
               | China will have a Navy that (by tonnage) rivals the US's
               | Navy in a few short years. US still will have more
               | capital ships but there's big, unanswered questions about
               | what the proper tactics will be in the next great naval
               | battles.
               | 
               | Would we rather have the US's "Supercarrier" strategy?
               | Big ships with lots of money put into each one? Or would
               | China's "little ships" strategy be superior?
               | 
               | Really: one question. Will China's hypersonic missiles
               | truly be a capital-ship killer? If their weapon can truly
               | kill a US Supercarrier, (or more specifically: if China
               | __believes__ it can kill the US Supercarriers) then China
               | will probably attack Taiwan.
               | 
               | China is building a navy for _some_ reason. Taiwan seems
               | like the obvious target.
               | 
               | ------
               | 
               | China's increasingly large Navy is a big enough deal that
               | the USA has given away its nuclear submarine secrets to
               | Australia to counter-act the threat. That doesn't really
               | change the picture too much (US always had nuclear-
               | submarines available), but its clearly a degree of saber-
               | rattling going on right now between US and China.
        
               | aeturnum wrote:
               | I think the idea is that, though I'm sure the AZ site is
               | unsatisfying as far as water goes, they can always pipe
               | water in and it was picked for other reasons.
        
               | Throwawayaerlei wrote:
               | What I've read is that reliable electricity is a much
               | bigger problem, Taiwan's leaders are failing hard on
               | this.
        
               | diroussel wrote:
               | This video from asianometry has the info on the water
               | issues for TSMC
               | 
               | https://youtu.be/Dq04GpzRZ0g
        
               | quickthrowman wrote:
               | I remember that, I believe the Intel plant in AZ
               | recycles/will recycle 95% of the water it uses
        
             | dragontamer wrote:
             | > Absent any geopolitical difficulties... but that's a
             | whole other discussion.
             | 
             | Geopolitics have been figured out. TSMC's next 5nm plant
             | will be in Arizona.
             | https://appleinsider.com/articles/21/06/01/tsmc-starts-
             | const...
        
               | worrycue wrote:
               | Will it be enough for the US government though?
               | 
               | The current shortage is making countries like the US
               | realise that semiconductors are a critical commodity for
               | the function of their advanced economies.
               | 
               | The US wants fabs back on their soil and will probably be
               | willing to burn money to make it so.
               | 
               | Will the US be satisfied with just having foreign
               | operated fabs on US soil? Or will the US want home growth
               | (and firmly under US control) companies like Intel to
               | have similar capabilities.
               | 
               | Frankly, IMHO things in the long term aren't looking that
               | great for TSMC. Some of their business is going to get
               | eaten by "local" fabs - even if they can't do leading
               | edge nodes they will eating into TSMC's business on the
               | lower end.
               | 
               | There is also the danger of overcapacity destroying any
               | profitability in the fab business altogether - guess who
               | will get bailed out by the US government if that happens;
               | hint: not TSMC.
        
               | MangoCoffee wrote:
               | >Frankly, IMHO things in the long term aren't looking
               | that great for TSMC. Some of their business is going to
               | get eaten by "local" fabs - even if they can't do leading
               | edge nodes they will eating into TSMC's business on the
               | lower end.
               | 
               | TSMC's Q3 shown bulk of their revenue come from higher
               | end node. 7nm along is at 34%. the only other options for
               | high end node is Samsung and Intel.
               | 
               | I don't see any long term problem for TSMC if they keep
               | going at its current pace.
               | 
               | Not many foundry can do high end. GlobalFoundries vow out
               | at 7nm a long time ago.
               | 
               | https://investor.tsmc.com/english/encrypt/files/encrypt_f
               | ile...
        
               | worrycue wrote:
               | Low end is still money. It also reduces the total they
               | earn from the life time of the node / their investment.
        
               | zsmi wrote:
               | > There is also the danger of overcapacity destroying any
               | profitability in the fab business altogether - guess who
               | will get bailed out by the US government if that happens;
               | hint: not TSMC.
               | 
               | The boom/bust cycle is nothing new in semiconductors.
               | It's a fairly regular thing. Also, keep in mind that
               | consolidating and repositioning during downturns is how
               | TSMC became TSMC.
               | 
               | https://www.youtube.com/watch?v=Z7QkIECEkVc
        
               | worrycue wrote:
               | I don't mean temporary overcapacity. Overcapacity could
               | be near permanent / long lasting as governments step in
               | to prevent their local fabs from failing as they want to
               | maintain local production capability no matter what.
               | 
               | In general, if semiconductors become a national security
               | issue, I think there will be a fundamental change in the
               | nature of the business. It will not be business as usual
               | for TSMC.
        
               | zsmi wrote:
               | > In general, if semiconductors become a national
               | security issue, I think there will be a fundamental
               | change in the nature of the business.
               | 
               | Maybe, who knows what the future will bring.
               | 
               | But I've heard this before [1] and once recessions hit,
               | and budgets get cut, that kind of thing quickly becomes
               | less tenable.
               | 
               | And then someone realizes that it takes a constant stream
               | of incoming parts to keep the equipment inside any
               | factory running for any meaningful amount of time, and
               | that supply is not protected, and neither are their
               | suppliers...
               | 
               | But I agree, things will not stay as they are. The only
               | thing usual about this business is change.
               | 
               | [1] The US semiconductor manufacturing sector was under
               | serious assault by the Japanese in the 80s. That was my
               | first "trade war" in this industry...
               | 
               | https://www.washingtonpost.com/archive/business/1985/09/2
               | 2/s...
        
               | worrycue wrote:
               | That was before it was seen as a potential national
               | security issue.
               | 
               | Semiconductors could end up like the US defense industry,
               | which the US feeds with a continuous amount of money
               | (recession or not) and is not outsourced for obvious
               | reasons - but its products are sold to others; other
               | countries outsource to the US. The US buys military tech
               | on occasion but rarely ever directly buy the hardware in
               | significant numbers - they will manufacture it in-house.
               | It's great if it turns a profit but that's not the point.
               | 
               | Every country has their own defense industry if they can
               | afford it.
        
               | zsmi wrote:
               | It was the cold war and Reagan was president. Believe me,
               | plenty of people were using the national security angle.
        
           | hnburnsy wrote:
           | >TSMC will win
           | 
           | What do they win? More maket share, more revenue, more
           | profits, better margins, competitors goes out of business?
           | 
           | I know very little about this industry, but is the market big
           | enough for all players to 'win'?
        
             | dragontamer wrote:
             | > What do they win? More maket share, more revenue, more
             | profits, better margins, competitors goes out of business?
             | 
             | https://www.reuters.com/business/intel-details-mixed-
             | source-...
             | 
             | > Intel said Thursday its "Alchemist" graphics chips will
             | be made by TSMC using the latter's newly named "N6"
             | chipmaking technology, an upgraded version of its "N7"
             | technology.
             | 
             | I mean, I guess they're already "winning". Intel's own
             | chip-making group has begun to use TSMC. Hopefully Intel
             | can figure something out about what its like to be a
             | customer, so maybe they can be a better supplier?
             | 
             | But yes: customers, market share, and knowledge. By having
             | more customers, TSMC can perform more experiments on more
             | leading edge nodes, like 3nm or smaller.
        
           | orangepurple wrote:
           | It is only a matter of time before PRC annexes the island of
           | Taiwan and TSMC production is hugely disrupted. The USA did
           | not win the last two proxy wars against China (North Vietnam
           | and North Korea). This time will be no different.
        
             | zsmi wrote:
             | If China annexes Taiwan it will be for reasons that have
             | nothing to do with TSMC.
             | 
             | There may be a short term benefit but if they get cut off
             | from ASML (Europe), Applied Materials (US), etc. it's going
             | to be tough to keep their machines in service and stay
             | leading edge. And those companies have very deep
             | international supply chains too and may also get
             | sanctioned.
        
             | specialist wrote:
             | Such confidence. You should cash in.
             | 
             | https://www.predictit.org/
        
               | orangepurple wrote:
               | There is no objective measure of "having won" the war.
               | There never is because war results in extremely mixed
               | outcomes. All that matters is the victors have the power
               | to subjugate the people of the land, people's beliefs and
               | consequences be damned.
        
               | mcculley wrote:
               | There is no market on PredictIt for that, as far as I can
               | tell. Where can one buy for this prediction?
        
             | irdc wrote:
             | There's an argument to be made that annexing Taiwan would
             | actually be detrimental to the PRC: doing so would be
             | hugely disruptive to the global supply chains that form a
             | major source of income to China.
        
               | orangepurple wrote:
               | China is willing to decimate its own economy to achieve
               | long term objectives. This includes annexing Hong Kong,
               | shutting down celebrity culture, fintechs, and the tech
               | industry.
        
               | irdc wrote:
               | I don't disagree that the PRC has their own best
               | interests in mind. However, I don't see how they can be
               | oblivious to the fact that going to war with and
               | occupying Taiwan would not only tie up a significant part
               | of their military, but would also immediately give their
               | current trading partners both reason and rationale to cut
               | off trade. Not to mention the brain drain from Taiwan
               | that would follow shortly after.
               | 
               | If anything, I'm far more worried about the PRC
               | exercising the soft power it's slowly been building in
               | eg. part of Africa.
        
               | dragontamer wrote:
               | The idea is to get Taiwan during the tail-end of the
               | USA's upgrade cycle.
               | 
               | China is building new ships today: roughly 3 aircraft
               | carriers, and a huge number of Destroyers that will (on a
               | tonnage basis), outnumber the entirety of the US Navy.
               | They aren't capital ships, but a mass of lower-quality
               | ships would probably still work if those hypersonic
               | missiles can really kill our capital ships. (A big
               | question in of itself: do China's hypersonic "ship
               | killing" missiles work? If so, can the USA's defense
               | systems shoot them down? If not, then why wouldn't China
               | attack Taiwan?)
               | 
               | Meanwhile, the US Navy is just about to upgrade over the
               | next 15 years. This means that a number of our ships will
               | be docked, and the ships that are remaining will be older
               | designs.
               | 
               | If China times it correctly, it can attack Taiwan and
               | force the USA to defend with its obsolete ships, and
               | before the new ships come online. In effect: the USA has
               | already "spent" our money / resources on the upgrade
               | process, but we haven't gotten the benefits of it yet.
               | 
               | ----------
               | 
               | This is a once-in-a-generation opportunity to attack.
               | Once the USA's fleet is upgraded, the opportunity closes
               | (as USA will have newer / better technology ships, while
               | China's old Carriers/Destroyers will be at the
               | disadvantage. And China won't reclaim the advantage until
               | it spends a huge amount of time and money on their own
               | upgrade cycle).
               | 
               | Furthermore: this "delay in upgrade cycles" was caused by
               | Bill Clinton's budget in 1996. It takes many years for a
               | budgetary issue to come up, and the USA has spent huge
               | amounts of money on its military from 2001 onwards
               | (because of Afghanistan / Iraq). As such, no such
               | "upgrade gap" will exist for 20+ years at the minimum
               | after this opportunity passes.
               | 
               | Will China be willing to wait another 50 years for
               | another opportunity like this? Or will China actually go
               | for it? And remember, China has already dedicated
               | incredible amounts of money towards building a new fleet.
               | China's fleet is a "sunk cost", their only decision now
               | is whether or not to use it.
        
               | infamia wrote:
               | I don't think the timing is favorable for China. Based on
               | the papers I've read, China is about 15 years away from
               | having a sufficient amphibious capability needed to
               | invade Taiwan. That very likely means a sustained
               | blockade, which will be extremely difficult politically,
               | militarily, and economically. Surely such an invasion
               | would be swiftly followed by harsh sanctions from many of
               | China's trading partners. Considering the systemic risk
               | China is presently baking into their economy by not
               | allowing defaults to occur, what will be the appetite for
               | adventurism of this sort with things unsettled at home?
               | Is Xi willing to risk completely destabilizing China's
               | economy to capture Taiwan? That sounds extremely reckless
               | and unlikely, but stranger things have happened.
        
               | irdc wrote:
               | Sure, they may very well win the battle. What I'm trying
               | to say is that in the course of doing so they would very
               | likely lose the war.
        
               | dragontamer wrote:
               | The Nazis and Imperial Japanese lost the war the minute
               | they made strategic blunders like... pissing off USA +
               | Soviets __simultaneously__.
               | 
               | It turns out that the human ability to make strategic
               | blunders is very possible. So if your best argument is
               | "it'd be a strategic mistake to do X". Well... history is
               | filled with horrible strategic blunders.
               | 
               | It'd probably be against American interests and a
               | strategic blunder to divert forces from Afghanistan into
               | Iraq on an notion of WMDs for example. Everyone makes
               | strategic blunders all the time. I don't fault people for
               | making them, I just try and study them and understand why
               | it happens.
               | 
               | ----------
               | 
               | There's something fascinating about war machines, like
               | carriers, hypersonic cruise missiles, and destroyers. You
               | have to see them in action to understand the intoxicating
               | effects of these machines.
               | 
               | Once you understand how these machines can hypnotize a
               | person... how they can make you feel like you can
               | accomplish anything... then, and ONLY then, will you
               | understand why Wars get started.
               | 
               | China's got Hypersonic cruise missiles. They know it. We
               | know it. China knows the USA doesn't have them (!!!).
               | That knowledge is intoxicating. China sees that as a
               | military advantage. Will they be intoxicated by that
               | knowledge to the point where they attack Taiwan?
               | 
               | Well, no one knows for certain. But they've looked at
               | those missiles and have __already decided__ to build more
               | ships than the entirety of the US Navy. So what does that
               | tell you?
        
               | infamia wrote:
               | > The Nazis and Imperial Japanese lost the war the minute
               | they made strategic blunders like... pissing off USA +
               | Soviets __simultaneously__.
               | 
               | This is an important point and why I believe Wolf warrior
               | diplomacy runs contrary to China's national interests. It
               | has caused countries who previously viewed China as
               | merely a competitor to view it as a direct threat and to
               | take appropriate action. You know you've gone too far
               | when your actions have resulted in Korea and Japan
               | aligning with each other about the need for closer ties
               | and to align with the U.S. on regional security.
        
               | htrp wrote:
               | any sources or mode details on this?
        
               | dragontamer wrote:
               | Yes? Anything in particular you want to focus on? I think
               | I covered a lot of topics, lol.
               | 
               | https://en.wikipedia.org/wiki/DF-21#DF-21D_(CSS-5_Mod-4)_
               | Ant...
               | 
               | The DF-21, available maybe 10 years ago, would have the
               | range to hit ships all the way out to Japan or so. That's
               | really all you need to know: China is trying to develop
               | (or already has developed) "ship-killing" hypersonic
               | missiles.
               | 
               | But of course, no one knows if they work vs US ships (can
               | US Ships deflect the missile? Do we have flares or
               | something that the missile will mistake for a ship? Can
               | the US shoot down the missile before it reaches a ship?
               | No one knows).
               | 
               | -------
               | 
               | For China's military composition: https://media.defense.g
               | ov/2020/Sep/01/2002488689/-1/-1/1/202...
               | 
               | You can see in the Eastern/Southern theaters of China,
               | they have roughly 500,000 Army troops vs Taiwan's 80,000
               | troops. (China has a military of over 1-million, but most
               | are deployed elsewhere). China also has:
               | 
               | "The PRC has the largest navy in the world, with an
               | overall battle force of approximately 350 ships and
               | submarines including over 130 major surface combatants.
               | In comparison, the U.S. Navy's battle force is
               | approximately 293 ships as of early 2020. China is the
               | top ship-producing nation in the world by tonnage and is
               | increasing its shipbuilding capacity and capability for
               | all naval classes."
               | 
               | So PRC already outnumbers the USA in terms of ships. In a
               | few more years, PRC will outnumber the USA in terms of
               | tons. China is definitely going for "build more" and not
               | necessarily "build better". There hasn't been a modern
               | naval battle since like WW2 between major powers, so no
               | one really knows if this is a good or bad strategy. But
               | its certainly a strategy.
               | 
               | USA of course has our 10x Nimitz supercarriers + 1x Ford
               | supercarrier (going through our carrier-upgrade cycle
               | currently, +F35 project I'm sure you're aware of). USA
               | has a number of "Amphibious assault ship", which are
               | sorta-kinda like carriers (except for the Marines instead
               | of Navy), but do contain VTOL aircraft like F35-B
               | variant.
               | 
               | I don't think anyone really knows for sure how the battle
               | will play out. The US ships (ie: the "Supercarriers") are
               | incredible war machines, and even the smaller Amphibious
               | assault ships would probably go toe-to-toe with even the
               | Chinese carriers. But how does that play out with China's
               | missiles and airforce?
        
               | joconde wrote:
               | > why wouldn't China attack Taiwan?
               | 
               | The US officially doesn't rule out escalating from
               | conventional to nuclear war against other nuclear-armed
               | countries. Even if the possibility is remote, I imagine
               | that nobody is suicidal enough to want to test the
               | possibility.
        
               | dragontamer wrote:
               | And what if China performs the calculus: decides that
               | Tactical nuclear weaponry is fine and that the USA isn't
               | dumb enough to escalate into Strategic nuclear weaponry?
               | 
               | There's a big difference between nuclear powers lobbing
               | 100kilo-ton bombs at each other's navies in the Pacific,
               | and nuclear powers using 10-Megaton bombs at each other's
               | cities.
               | 
               | Given that China has decided to make a large mass of
               | cheap Destroyers, what do you think China is thinking
               | about this next war? Tactical nuclear weaponry would
               | favor the one who has a more dispersed naval force, and
               | be a bigger problem for USA's multi-billion $$
               | supercarriers, would it not?
               | 
               | -------
               | 
               | Lets say China nukes a military Supercarrier. Will the
               | USA respond by nuking Beijing? Of course not. Knowing
               | that USA is tactically in the disadvantage from using
               | nukes (due to the composition of our fleet vs the Chinese
               | fleet), we know that USA won't escalate to using even
               | tactical nukes.
        
               | joconde wrote:
               | On the one hand, that makes sense; on the other, it would
               | still be the first use of nuclear weapons since WW2. The
               | last close calls, like Cuba, didn't even involve any
               | bombing, just the threat of one power's blockade against
               | another's ships, and that one is widely seen as having
               | come close to mutual destruction. I don't think that
               | actually lobbing nukes at each other would be less
               | dangerous.
               | 
               | Also, accidents happen, and it's not clear how secure
               | strategic weapons are against everything from a zealous
               | airman to a submarine cut off from its command and having
               | to make a judgment call. Daniel Ellsberg's book (The
               | Doomsday Machine) suggests that this kind of accident
               | during a crisis has come close to triggering a full
               | nuclear war several times.
               | 
               | To summarise, I'm sure the tactics look good for China,
               | but escalating to nukes still seems like a suicidal move,
               | considering the risk of accident or miscalculation.
        
               | dragontamer wrote:
               | I personally agree with you.
               | 
               | But I can conceive a hypothetical Chinese Admiral who
               | disagrees with the both of us. And that's all that it
               | will take.
        
               | orangepurple wrote:
               | China has a policy of making everything in-house and
               | already requires exit visas for its people. Brain drain
               | can't happen if you are not allowed to leave.
        
               | irdc wrote:
               | Just how many people do you think are needed to sabotage
               | a chip fab? I'd say about one.
               | 
               | How many rabid PRC-haters do you think Taiwan harbours?
               | Well, it's more than one...
        
               | dragontamer wrote:
               | How many "von Braun" types do you think exist in Taiwan?
               | People who are willing to work on cool projects no matter
               | who is in charge?
               | 
               | von Braun worked for the Nazis to make missiles during
               | WW2. Then was picked up by USA / NASA to make missiles /
               | ICBMs / Space Program.
               | 
               | It turns out that a surprising number of engineers are
               | rather flexible when it comes to ethics. They just want
               | to work on cool things.
        
               | irdc wrote:
               | Yep, that'll likely eventually happen...
               | 
               | ...after a couple of years of unrest and social
               | instability. Which as simonh pointed out
               | (https://news.ycombinator.com/item?id=28959591) is
               | exactly what the CCP does not want.
               | 
               | Knowing that the PRC tends to take the long view, I don't
               | think they'd take the chance regarding Taiwan.
        
               | dragontamer wrote:
               | > ...after a couple of years of unrest and social
               | instability.
               | 
               | If China wins Taiwan vs the USA, there wouldn't be any
               | unrest or instability. The Chinese people would be proud
               | of their accomplishment, and the rise of China as a
               | military power.
               | 
               | Like... what "instability" occurred from Russia's
               | annexation of Crimea? None what so ever.
        
               | tjalfi wrote:
               | Organized stay-behind[0] operations such as Operation
               | Gladio[1] were common in western Europe during the Cold
               | War.
               | 
               | The Taiwanese military has had decades to prepare for a
               | Chinese invasion; it would be surprising if they didn't
               | have a similar setup in place.
               | 
               | [0] https://en.m.wikipedia.org/wiki/Stay-behind
               | 
               | [1] https://en.m.wikipedia.org/wiki/Operation_Gladio
        
               | simonh wrote:
               | It depends what you mean by long term objectives. The
               | supreme objective of the CCP is to stay in power in
               | China. All and every other objective is subsidiary to
               | this.
               | 
               | The CCP decided many decades ago that economic growth was
               | absolutely necessary for them to stay in power because it
               | is required in order to maintain social stability. An
               | economy with hundreds of millions of unemployed peasants
               | in the countryside, and feeble industries was not
               | sustainable. This is why they purged a bunch of
               | ideological marxists and embraced communism with Chinese
               | characteristics, AKA Capitalism.
               | 
               | For a long time the CCP maintained that 7%+ economic
               | growth was necessary in order to absorb the unused labour
               | pool and maintain social stability.
               | 
               | Needless to say a war with Taiwan and the US, plus
               | blockades by the rest of the world would be a somewhat
               | risky situation from a social stability point of view. It
               | would be a complete throw of the dice, and for all
               | Chinese people love gambling with money, that's not the
               | CCP way with politics.
        
               | dragontamer wrote:
               | Would the world respond extremely negatively to a Taiwan
               | scenario? Or much more negatively than a Hong Kong
               | scenario? (Which literally just happened, and not much
               | seems to have changed as far as I can tell)
               | 
               | We know the USA would respond militarily. But how many
               | other countries would be pulled into the conflict?
               | Germany still trades with Russia despite the Crimea
               | annexation, right? Clearly USA / UK / Australia are
               | making plans but is there anyone else who'd join in the
               | fight?
               | 
               | Like, realistically, what would happen under a Taiwan
               | scenario? Do you think McDonalds and Apple will just
               | leave China? Will Tencent games be banned in the USA?
               | Will USA really make League of Legends and Genshin Impact
               | illegal during the war?
               | 
               | Or, would the world continue as usual? Would US Video
               | Gamers continue playing their games, McDonalds continue
               | China operations / Apple continue making their iPhones
               | while the whole military stuff happens? Frankly, I see
               | this as the more realistic scenario.
               | 
               | We can already see how video gamers reacted to Hong Kong:
               | with a bunch of companies capitulating to Chinese
               | demands.
        
               | simonh wrote:
               | Hing Kong is a completely different situation, it's
               | always been mainland Chinese territory as Britain only
               | leased it. Full mainland control was always the plan, it
               | was just a matter of time. Also the political
               | administration, elected under a system implemented under
               | British rule, supported the recent changes.
               | 
               | I'm in no way justifying what the CCP did to Hong Kong,
               | but frankly it was inevitable. That is not the case with
               | Taiwan, which has a population and democratically
               | legitimate government completely committed to
               | independence.
               | 
               | An invasion of Taiwan would be much more similar
               | historically speaking to the German invasion of Poland,
               | or the Korean war. It's utterly and completely
               | unacceptable, and would be legitimate grounds for total
               | war. Should China succeed in conquering the island it
               | would not be possible to counter-invade, but an
               | indefinite blockade of transport into and out of China
               | and total interdiction of it's air and sea traffic both
               | civilian and military would be entirely proportionate and
               | the minimum I would expect. See the blockade of North
               | Korea for an example. We'd buy our phones and video games
               | elsewhere.
        
               | dragontamer wrote:
               | > but an indefinite blockade of transport into and out of
               | China and total interdiction of it's air and sea traffic
               | both civilian and military would be entirely
               | proportionate and the minimum I would expect
               | 
               | And China outnumbers the US warships ship-for-ship
               | currently, and China is outbuilding more warships ton-
               | for-ton than even the USA.
               | 
               | China also has a larger (though inferior) air force, as
               | well as a huge number of (untested) missiles. But the USA
               | won't have many bases to stage our Air Force from (Taiwan
               | is so close to China, and so far away from Japan / South
               | Korea). So really, its China's Airforce + China's
               | Missile-force + China's Navy vs the US Navy + US Marines
               | + maaaayyyyybe a very stretched thin US Air Force.
               | 
               | If the USA wants to enforce a naval blockade, they'd have
               | to win a war against China. That's a lot of advantages to
               | China frankly.
               | 
               | I'm certain the US could beat China in a "fair fight" for
               | Antarctica. But the issue with the Taiwan scenario is
               | that the Chinese military is growing ever stronger, and
               | its conceivable that China could beat the USA in that
               | region. If China does happen to win militarily, then a
               | US-sponsored blockade would be impossible.
        
             | MangoCoffee wrote:
             | i believed people is overplaying China invasion. TSMC is a
             | business. a saying goes "business man have no border".
             | 
             | TSMC have a lot of fabs in Taiwan. that doesn't mean TSMC
             | as a business can't build fab elsewhere.
             | 
             | TSMC is already building a fab in AZ USA and reach an
             | agreement with Sony to build a fab in Japan. TSMC also have
             | fabs in China and India govrt is looking to Taiwan for a
             | fab in India.
        
             | Zababa wrote:
             | > the island of Taiwan
             | 
             | You sound like you have a dog in this fight.
        
               | orangepurple wrote:
               | I couldn't care less. Supply chains are already massively
               | disrupted, I can't get the electronics I care about at
               | affordable prices and lead times, and everyday costs are
               | out of control in my country (USA).
        
           | irrational wrote:
           | Why has TSMC succeeded where Intel has failed?
        
             | dragontamer wrote:
             | > Why has TSMC succeeded where Intel has failed?
             | 
             | Everyone is buying the same machines from ASML. Machines
             | aren't the issue, its process. Its nitty gritty
             | manufacturing details that no one will talk about (because
             | those details are the "moat", the secret sauce that makes
             | TSMC do something that Intel can't).
             | 
             | It looks like Intel has figured out 7nm, just much later
             | than expected.
        
             | Jensson wrote:
             | USA paid its best engineers to do advertisements and
             | finance speculations. It means USA will be best in the
             | world at advertisements but naturally will lag behind in
             | other fields.
        
               | thedougd wrote:
               | Or in other words, Intel fell into the same management
               | trap as other legacy tech providers. They focused on
               | paying industry wide 'median' salaries and bled talent.
        
             | filereaper wrote:
             | Leadership.
             | 
             | TSMC has competent leaders like Morris Chang and Mark Liu.
             | 
             | Intel had lost it's way after Andy Grove gave up the helm.
             | Pat Gelsinger grew up under Gordon and Grove and the old
             | guard is back.
        
               | bsder wrote:
               | Actually, it's more than just the executive slots.
               | 
               | Intel is institutionally paranoid, and Grove is part of
               | that fault. The old guard, even in engineering, is
               | retiring/dying and have not groomed successors because
               | that could have threatened their political position.
               | 
               | Can Gelsinger really fix this? I suspect probably not.
        
             | AlphaSite wrote:
             | Intel takes huge leaps, it's how they kept 5e it lead for
             | so long, but TSMC makes incremental progress and it's paid
             | off now that things are getting extremely difficult.
        
           | DCKing wrote:
           | > In fact, TSMC has already started making 5nm chips called
           | the Apple M1 Pro.
           | 
           | This is not a recent development. TSMC has been mass
           | producing 5nm chips for slightly over a year now. The first
           | 5nm chip on the market was the Apple A14 (iPhone 12 line)
           | released almost exactly one year ago, and soon thereafter
           | (November 10th, 2020) the first M1 Macs.
           | 
           | Samsung has had their ""5nm"" chips out since early 2021 with
           | the Exynos 2100 and Snapdragon 888. It's in the ballpark of
           | TSMC's process but not as dense.
           | 
           | Intel hasn't even announced their first mass market 7nm (or
           | ""Intel 4"", sigh) products yet. ""Intel 4"" is inferior to
           | Samsung's and TSMC's 5nm processes on paper, and it'll likely
           | not even be next year that we're going to see products with
           | them.
           | 
           | I don't think Intel's foundries will be competing on the
           | leading edge of the market. They'll have be trying to have
           | value focused production with their 14nm and 10nm processes,
           | I would guess. There should be plenty of demand there still,
           | but it'll be a good while - if ever - before Intel is leading
           | again.
        
             | eulers_secret wrote:
             | >""Intel 4"" is inferior to Samsung's and TSMC's 5nm
             | processes on paper {...}
             | 
             | According to transistor density information this is false
             | (https://en.wikipedia.org/wiki/5_nm_process)
             | 
             | TSMC 5nm density: 173 MTr/mm^2
             | 
             | Samsung 5nm density: 127 MTr/mm^2
             | 
             | Intel 4 (estimated): ~200 MTr/mm^2
             | 
             | Got a source? I'm willing to change my mind, but the data
             | doesn't agree with your assertion from my point of view.
             | 
             | Samsung's process has always lagged TSMC and INTC. It's
             | part of why the 3080 is so hot/power hungry.
        
               | chelical wrote:
               | Intel's numbers are theoretical. They're still relying
               | heavily on multi patterning for their current chips. They
               | have yet to demonstrate competency with EUV. Intel 4 is
               | also projected for 2023. Tsmc are producing 5nm chips
               | right now.
        
               | DCKing wrote:
               | Think I may be mistaken here. Would be good if ""Intel
               | 4"" can compete!
        
               | [deleted]
        
         | SavantIdiot wrote:
         | Up until the kaboom, microprocessors have become a commodity.
         | Granted one with _huge_ startup costs, but a commodity
         | nonetheless. (There 's a reason why Intel used to be top forbes
         | company, and why today it is still stuck in the $100-200B
         | market cap range compared to $2T amazons & apples.)
        
       | nly wrote:
       | Given that Samsung's process was powering the iPhone up until
       | 2015, how are Samsung doing in 2021 on this front?
        
         | simonh wrote:
         | Samsung's big cash cow is it's memory business, it's
         | responsible for only 20% of revenue but 50% of profits. They're
         | doubling down on the logic chip business with massive
         | investment in their 3nm gate-all-around architecture.
         | 
         | One issue is there's a significant conflict of interest between
         | their device and CPU businesses. Apple left them precisely
         | because Samsung is a competitor in handsets, and other handset
         | manufacturers are also wary of buying from them for the same
         | reason.
         | 
         | As a side note it is true TSMC deserves a lot of credit for the
         | advantages of the Apple M-series CPUs. Without the 5nm TSMC
         | process they wouldn't be anywhere near as impressive. However
         | Apple has been working very closely with TSMC on it, and their
         | long term financial commitments been a big factor in TSMC being
         | able to move forward so decisively on developing the process
         | and investing in future nodes and capacity. Apple ditching
         | Samsung as a supplier has had a big influence on the shape of
         | the CPU industry. The (currently) top comment by WithinReason
         | highlights part of this dynamic.
        
           | smoldesu wrote:
           | > As a side note it is true TSMC deserves a lot of credit for
           | the advantages of the Apple M-series CPUs. Without the 5nm
           | TSMC process they wouldn't be anywhere near as impressive.
           | 
           | We're going to look back on this story as one of the craziest
           | product launches of all time. I genuinely have no idea how
           | Apple secured 5nm so early ( _and_ blocked other customers
           | from getting a piece until 2022), I have to imagine that it
           | was a last-minute decision they pushed out to TSCM, judging
           | from their response. So many different parts of the M1 are
           | pushing boundaries we 've never hit before (for better and
           | worse), so it will be deeply interesting to see how Apple
           | scales a CPU that barely exists in it's current form. Some of
           | my friends in the manufacturing biz were absolutely
           | dumbfounded by the fact that Apple fit 64 gigs of memory on
           | the M1 Max (the thing is surrounded by memory chips), which
           | makes me extremely curious about their next pro hardware.
           | 
           | Fun thought experiment, too: Would the M1 have still been
           | such a knockout hit on TSCM 7nm? It certainly wouldn't be as
           | good as it's current incarnation, but I'd bet dollars-to-
           | donuts that a big.LITTLE ARM chip would have worked pretty
           | well on last-gen silicon.
        
             | hylaride wrote:
             | Ruthlessness. Apple did the same thing when the iPhone
             | first came out with the higher end capacitive touch
             | screens. When it was released, all the competitors raced to
             | catch up but found that the supply was gobbled up by apple
             | for years. If you compared any android touchscreens with
             | apple ones for the first 3ish years the apple ones were
             | night and day better.
             | 
             | Apple is also willing to invest in technology in return for
             | exclusivity for awhile.
        
             | simonh wrote:
             | >I genuinely have no idea how Apple secured 5nm so early
             | (and blocked other customers from getting a piece until
             | 2022), I have to imagine that it was a last-minute decision
             | they pushed out to TSCM, judging from their response.
             | 
             | I would not be at all surprised if they laid the groundwork
             | for this partnership back in 2015 or even earlier. The only
             | reason Apple dual-sourced the A9 was because TSMC didn't
             | have the capacity to deliver the full requirement, but
             | Apple had already been trying to get off Samsung for years.
             | 
             | Apple has a long track record of early, heavy capital
             | investment in core technology manufacturing capacity and
             | long term contracts with suppliers. This serves the dual
             | strategic purposes of securing exclusive access to new
             | tech, and driving down the long term costs of that tech.
             | They did this with retina displays, in that case Apple
             | literally owned the manufacturing equipment operated by
             | Sharp.
             | 
             | In order to build out fab capacity TSMC needed long term
             | high volume guaranteed orders. Apple delivered that. There
             | was nothing last minute about any of this, I think it's
             | always been the plan.
        
           | hocuspocus wrote:
           | > One issue is there's a significant conflict of interest
           | between their device and CPU businesses. Apple left them
           | precisely because Samsung is a competitor in handsets, and
           | other handset manufacturers are also wary of buying from them
           | for the same reason.
           | 
           | I don't think what bothered Apple is relevant to other phone
           | makers. Case in point, Qualcomm doesn't mind having Samsung
           | fab their SoCs, and even their modems, a domain where Samsung
           | has repeatedly tried to catch up!
           | 
           | Anyway in the current Android smartphone landscape, everyone
           | is using ARM reference CPU designs.
        
             | simonh wrote:
             | It's depressing, it seems like the high end Android handset
             | market has disappeared. What we have now are midrange and
             | low end, and what passes for high end are really mid range
             | phones dressed up with a few premium features or gimmicks.
        
               | RNCTX wrote:
               | > What we have now are midrange and low end, and what
               | passes for high end are really mid range phones dressed
               | up with a few premium features or gimmicks.
               | 
               | Ultimately no one can shake their culture, it follows you
               | like your shadow.
               | 
               | Google's is cheap and low-end. They have become the
               | Walmart of tech companies.
        
             | dv_dt wrote:
             | There was also a point in Samsung's past when they had been
             | selling Nand chips to the market, then decided to hold all
             | the capacity for themselves (or maybe Apple and
             | themselves), then somewhat recently opened it back up again
             | - but nand (and CPU) chips aren't easily interchangeable -
             | so a reliable partner is more important. Dram chips on the
             | other hand are much more interchangeable.
        
               | Throwawayaerlei wrote:
               | A lot of what I read about TSMC's current lead is that
               | it's based on trust, including creating a complete
               | ecosystem based on that. As you note Samsung is not so
               | trustworthy a company for outside competitors, and I'd
               | add reports it's not always honest about what it's
               | accomplishing for its foundry customers, or would be
               | ones.
        
           | TMWNN wrote:
           | >One issue is there's a significant conflict of interest
           | between their device and CPU businesses. Apple left them
           | precisely because Samsung is a competitor in handsets, and
           | other handset manufacturers are also wary of buying from them
           | for the same reason.
           | 
           | Commodore manufactured the 6502 with its MOS subsidiary, but
           | I don't believe that Apple or Atari hesitated from using the
           | 6502 in their computers.
        
             | doctorshady wrote:
             | But other companies, like Rockwell Semiconductor,
             | manufactured perfectly good 6502 clones. If MOS tightened
             | the screws, Atari or Apple could've simply headed to any
             | other number of suppliers. The same can't necessarily be
             | said for a competitive processor today.
        
             | sgtnoodle wrote:
             | It seems like the industry, players and technology involved
             | have evolved and matured significantly since 6502 CPUs were
             | relevant. Is Commodore or Atari even still around?
             | 
             | If Samsung came out with a contemporary CPU with 2x the
             | compute per watt of the M1, Apple would probably be
             | interested in it.
             | 
             | Notably, it seems like Intel had the capability and head
             | start to have been able to develop such a CPU by now, but
             | instead they held back progress to maximize their profits.
             | It was apparently a bad long term strategy, as they've now
             | lost their lead. The market moved on around them.
        
       | WithinReason wrote:
       | I wasn't aware of the connection between volume and technological
       | progress in semiconductor manufacturing:
       | 
       | "When you have volume orders, then you can do yield experiments,
       | you can improve your yield, and yield is everything because
       | that's how you cover your costs,"
       | 
       | "Foundries that can juggle multiple clients and technologies can
       | swiftly advance on their competitors. For example, TSMC's scale
       | allowed it to master extreme ultraviolet lithography faster than
       | anyone else, which reduced the number of steps it took to make
       | advanced chips and boosted the throughput of its fabs."
        
         | Nokinside wrote:
         | Semiconductor manufacturing R&D and pathfining includes many
         | expensive dead ends. Massive volume is required to justify the
         | gigantic upfront cost to develop a new process every 2-4 years
         | (overlapping with previous and next process node).
         | 
         | Economist would say that volume gives you:
         | 
         | 1) Increasing marginal returns after massive fixed capital
         | investments.
         | 
         | 2) increasing returns to scale from variable investments when
         | volumes increase.
        
           | SavantIdiot wrote:
           | Every CPU project I worked on at Intel from 1997-2010 was
           | cancelled. That's 13 years of one senior engineering salary
           | that never turned a profit, let alone the thousand other
           | people on the related teams. One could argue the failed
           | learnings helped guardrail successful products, but my
           | internal perspective says, Nah. Intel throws/threw a
           | staggering amount of money at failed projects. Wondering if
           | Gelsinger will shake out the numerous boondoggles that litter
           | that company.
        
             | balls187 wrote:
             | Several air-frames met similar fates at various defense
             | contractors.
        
             | happycube wrote:
             | If they had spent just a bit of that money to keep the DEC
             | Semi team together w/o interference, intel would probably
             | own the ARM SOC market right now.
        
             | bhouston wrote:
             | This is fascinating.
             | 
             | Where were they cancelled? I know about Larrabee and
             | Itanium of course. But the others? Would they have
             | succeeded in the market if pushed?
             | 
             | Or was Intel just going in all directions a bit randomly
             | without strong purpose?
        
               | SavantIdiot wrote:
               | Itanium shipped, and I have a soft spot in my heart for
               | it, VLIW was brilliant. The hate is administered by
               | knownothings, it was a CPU for engineers.
               | 
               | Larrabee is Xeon Phi. Aren't they shipping today?
               | 
               | These never saw the light of day, only one taped out. I
               | don't know why, I was too busy engineering to care:
               | 
               | - a Pentium3 + on-die, integrated graphics
               | 
               | - a 7.2 GHz pentium 4 (yes, 7.2 GHz. in 2002)
               | 
               | - the successor to the i740 graphics which was
               | cannibalized for the i815 chipset
               | 
               | - another Pentium 4 variant which I can't recall what it
               | was, but we spun up an entire arch team to work on it
               | 
               | - variants of Itanium (McKinley, Madhall)
               | 
               | > Or was Intel just going in all directions a bit
               | randomly without strong purpose?
               | 
               | DING DING DING.
        
         | HarHarVeryFunny wrote:
         | Isn't part of it also due to the cost of new fabs ($1B+)... you
         | need the scale to generate enough profit to plough back in to
         | keep up.
        
         | amelius wrote:
         | It's called Wright's law.
         | 
         | Contrary to Moore's law, it's not slowing down.
        
           | Nokinside wrote:
           | I tought Wright law (experience curve effect ) is related to
           | repetitive manual labor.
        
             | vlovich123 wrote:
             | I thought it was a more general principle and applies
             | almost any task. For example, the software written today is
             | done at a larger volume and more cheaply than at any other
             | point in history and can do more things than ever before
             | (heck printing "hello world" or adding 2 numbers was a feat
             | on the original machines).
             | 
             | My understanding is that it's a general phenomenon. The
             | more we do something, the faster we get at it (either as a
             | species or individuals), the more tools we accumulate to
             | help us smoothie out any bumps, tackle larger projects more
             | efficiently, etc.
        
               | Nokinside wrote:
               | That's general principle called increasing returns to
               | scale and decreasing marginal cost.
        
             | bsedlm wrote:
             | isn't chip making is extremeley repetitive? (though not
             | manual, or maybe we could say manual but through extermely
             | complex tools?)
        
               | Nokinside wrote:
               | Machines don't learn from experience and repetition.
        
               | krastanov wrote:
               | The operators that calibrate them and pick parameters,
               | do. And some machines have internal long-term calibration
               | and feedback (no need to call it Machine Learning), so in
               | a way they learn on their own too.
        
               | zsmi wrote:
               | Obviously you're correct about that, but those
               | productivity gains from those sources are unlikely to be
               | accurately predicted by Wright's Law, which is what this
               | thread is about.
        
               | simonh wrote:
               | If you scale up production by just building more of the
               | same machines that's right, but over time with new
               | process nodes and increasing fab sizes there are plenty
               | of opportunities to apply new skills to improve
               | automation and scale effects.
        
       | gtirloni wrote:
       | I know the focus of the article is Intel and TSMC but I kept
       | wondering about Samsung. If it's following the same foundry model
       | that TSMC is, why does it only have a small fraction of the
       | market (compared to TSMC)? Shouldn't it be doing as well as TSMC?
        
         | Tenoke wrote:
         | WithinReason's comment seems to explain that. The benefits of
         | being bigger compound over time.
        
           | evancox100 wrote:
           | I don't think that explains it. Measured by wafer starts/mo,
           | Samsung is the largest semiconductor manufacturer in the
           | world, bigger than TSMC.
           | 
           | https://anysilicon.com/five-semiconductor-companies-
           | hold-53-...
           | 
           | Edit: it is maybe a little more complex than that, because
           | much of that is memory, and memory and logic processes may
           | not be able to share the same learnings and developments.
        
             | tooltalk wrote:
             | "... That represented 15.0% of the world's total capacity
             | and about two-thirds of it was used for the fabrication of
             | DRAM and NAND flash memory devices. ..."
        
         | TheTon wrote:
         | As others pointed out, they both do a lot of volume. But TSMC
         | are ahead at the leading edge.
         | 
         | Complete speculation, but I would guess this is mostly due to
         | Apple. Apple wants the best process and they're able to pay for
         | it. Further, Apple is mistrustful of Samsung so they were happy
         | to drop them and switch to TSMC.
         | 
         | I think this highlights the difficulty Intel will face.
         | Samsung's foundry is independent from Samsung's phone business,
         | and I don't think anyone has alleged otherwise. But even if
         | Intel does manage to keep its two sides at arms length, will
         | that be enough to attract business from competitors like Apple
         | and AMD? I'd guess no.
        
           | klelatti wrote:
           | Agree 100%. Three issues:
           | 
           | - Do other firms trust Intel with their IP? Apple has a new
           | feature for their next generation - Intel quickly becomes
           | aware of this and this information leaks into Intel's product
           | plans.
           | 
           | - Is Intel a reliable foundry partner? TSMC have a 30+ year
           | track record, Intel have none as a third party foundry. Will
           | they change their strategy again?
           | 
           | - Will other firms get a fair prioritisation of resources in
           | the fabs? Or will Intel's own products be favoured?
        
       | MangoCoffee wrote:
       | Intel need to split into two.
       | 
       | 1. Intel fabless: open up x86 like ARM. work on Xscale (ARM) and
       | RISC-V (SiFive).
       | 
       | 2. Intel foundry: a pure play foundry with no tie to its fabless
       | side to win customers trust.
       | 
       | the foundry ecosystem is going to hurt Intel. the current trend
       | is everyone design its own chip and outsource to foundry for
       | production.
       | 
       | edit: look like the deal to buy SiFive fall apart but the idea is
       | Intel fabless can focus on chip design regardless the platform.
        
         | throwawaysea wrote:
         | What you're suggesting is what AMD did when they spun off
         | Global Foundries, correct?
         | https://en.wikipedia.org/wiki/GlobalFoundries
         | 
         | What would make Intel more successful at operating a foundry
         | than anyone else? Or is it just a way to make the best of
         | assets they already own?
        
           | MangoCoffee wrote:
           | >What would make Intel more successful at operating a foundry
           | than anyone else?
           | 
           | Intel is very successful with their 14nm, with a engineer CEO
           | like Pat. I think Intel can catch up on node process.
        
         | jjoonathan wrote:
         | This kills the foundry.
        
           | ngomez wrote:
           | Could you elaborate? AMD spun their fabrication arm off into
           | GlobalFoundries a while back, and they seem to be doing okay.
           | I thought that would be a good precedent for Intel divesting
           | its fabs too, but I'd love to hear any counterpoints to that.
        
             | jjoonathan wrote:
             | GlobalFoundries completely gave up on leading edge and went
             | downmarket. It would be a shame to see Intel's fabs follow.
        
       | worrycue wrote:
       | Guess Intel is moving with the times. Won't be the first time
       | they overhauled their business, I heard they used to be DRAM
       | makers before jumping into CPUs.
        
         | agumonkey wrote:
         | lots of car makers were bike plants before, and before that
         | metalsmith
         | 
         | skills have to pivot I guess
        
       | amelius wrote:
       | This is a good thing.
       | 
       | Who wants one company to completely integrate its entire supply
       | chain, producing everything from start to finish?
       | 
       | Imagine the cost if all companies did this. Imagine how it would
       | suck for startup companies to get a foothold in this world.
        
       | [deleted]
        
       | slowjerk wrote:
       | Given the tension around Taiwan, they are in an exceptional
       | position.
       | 
       | China's dithering might be centred partly around considerations
       | of how they can overtake a country while keeping its silicon fabs
       | in tact.
        
       | klelatti wrote:
       | > Gelsinger will have to change Intel's culture and, to some
       | extent, its technology, both of which are deep-seated. "He has to
       | turn a huge ship around," said Robert Maire, president of
       | Semiconductor Advisors.
       | 
       | Yes and even harder they will have to convince potential
       | customers that their culture has changed too.
       | 
       | Edit: This also adds the complexity of constantly managing trade-
       | offs between (lower margin) external customers and the (higher-
       | margin) in-house CPU business - it would be so easy to get that
       | balance wrong.
        
         | after_care wrote:
         | All Intel needs to convince customers of us that they have a
         | attract supply of chips.
        
           | Enginerrrd wrote:
           | I think you've been downvoted because of English grammatical
           | errors, but if I understand your point correctly, I whole-
           | heartedly agree:
           | 
           | All intel needs to do is make competitive chips at a good
           | price. In past years, they resorted to more anti-competitive
           | efforts, but at the end of the day, if you make good stuff
           | and sell it at the right price, people will buy the crap out
           | of it.
        
             | klelatti wrote:
             | Lets look at who "people" are here - TSMC's biggest
             | customers over the last three years:
             | 
             | AMD, Nvidia - direct Intel competitors
             | 
             | Hi-Silicon - no due to being based in PRC
             | 
             | Mediatek - based in Taiwan
             | 
             | Which leaves Apple, Broadcom and Qualcomm.
             | 
             | I suspect they will get some business from the last two but
             | Apple clearly have a deep long term relationship with TSMC
             | and have invested a lot into that relationship. Can't see
             | it being easy to get them to move.
             | 
             | Maybe Intel is counting on political pressure to get the
             | big US firms to use them?
        
               | zeusk wrote:
               | There's a lot of interest from the big clouds on custom
               | sillicon, I'm sure part of any govt cloud contract could
               | include stipulations for use of sillicon manufactured or
               | atleast verified on the western hemisphere.
        
               | klelatti wrote:
               | That's a good point but isn't that just switching from a
               | high margin x86 product to a lower margin Arm based CPU -
               | seems like a defensive measure at best.
        
       | slowjerk wrote:
       | I find this article incomplete without mention of the China-
       | Taiwan situation adding to the mix in an enormous way.
        
       | DeathArrow wrote:
       | So we will buy AMD CPUs fabbed by Intel? Sneaky Intel, they still
       | found a way to have Intel inside. :)
        
         | revolvingocelot wrote:
         | I really really hope not. Considering what Intel is willing to
         | do in software to sabotage AMD performance, [0][1] I shudder to
         | think what they'll do in hardware.
         | 
         | [0]
         | https://ol.reddit.com/r/hardware/comments/ik9lw1/updated_int...
         | 
         | [1] https://www.agner.org/optimize/blog/read.php?i=49
         | 
         | ^ For those interested in the storied history of Intel hurting
         | AMD
        
           | alecco wrote:
           | Anything like that would be killing this new Foundry business
           | they are betting their future on. No way.
        
           | swalsh wrote:
           | Regulation of anti-competitive behavior seems to have been
           | extremely relaxed lately. Amazon's marketplace and Amazon
           | Retail seem at odds with each other, yet they're allowed to
           | coexest, and everyone is fully aware of the anti-competitive
           | behavior. Intel's chip business needs to be seperated from
           | their foundry business, and the 2 can't be allowed to
           | comingle with each other.
        
             | smoldesu wrote:
             | What incentive does the US government have to split up
             | highly lucrative, domestic businesses?
        
               | toast0 wrote:
               | If we're just thinking incentives, why have one highly
               | lucrative, domestic business, when you could have
               | several?
               | 
               | A lot of the anti-trust breakups result in several good
               | businesses and maybe some competition/consumer benefits
               | too.
        
               | kaashif wrote:
               | The incentive should be that a competitive free market is
               | better for prosperity in the long term. If anti-
               | competitive practices are allowed, the losers are the
               | consumers, whose interests the government are supposed to
               | represent.
               | 
               | Obviously it doesn't work that way in practice.
        
               | buu700 wrote:
               | From another point of view, looking at the government as
               | an institution rather than through its role as an
               | advocate of the people, you could also make the case that
               | the government should oppose any massive consolidation of
               | wealth/power as a threat to its own power.
               | 
               | FAANG companies each individually have higher annual
               | revenue than most countries' GDPs. In the absence of
               | government intervention, there wouldn't be much to stop
               | them from turning into British East India Companies and
               | establishing banana republics, raising private armies,
               | etc.
               | 
               | In an extreme scenario, some kind of corporate Genghis
               | Khan could hypothetically consolidate the S&P 500 into a
               | single megacorp if the DOJ allowed it to happen, and that
               | company's revenue would be about half the US GDP (making
               | it the third largest "economy" in the world). It would
               | effectively be a hostile state right in our own backyard.
               | Would we even have the ability to enforce taxation if
               | they said no? What would stop them from wielding that
               | incredible wealth to effectively buy a majority stake in
               | government?
        
           | [deleted]
        
           | WithinReason wrote:
           | Although GP was joking, if AMD was a customer of Intel
           | there's no way Intel would sabotage that relationship and
           | make other customers lose trust in them.
        
             | EGreg wrote:
             | Sure that's NEVER happened before ! Also, large
             | organizations always coordinate their strategy perfectly
             | consistently.
        
               | _jal wrote:
               | Sure, it can happen, and something like it probably has.
               | 
               | The point is that doing it and being caught out would be
               | something approaching corporate suicide, and sane
               | leadership would not risk it.
               | 
               | This places it in the bucket of 'unlikely, high impact'
               | risks for potential clients. They'd want to design
               | process and contractual language to try to make such
               | perfidy apparent and not bet the farm, but I doubt it
               | would be a deal breaker.
               | 
               | I would think IP concerns would dominate in such an
               | arrangement.
        
               | nosianu wrote:
               | > _would be something approaching corporate suicide_
               | 
               | No it would not. Just like in any other case where a
               | corporation had to pay a huge fine - they do it, or it
               | even gets lowered significantly, and then move on. The
               | executives who were responsible retired long ago and the
               | motto of shareholders and management always is "look to
               | the future and don't bother me with old problems".
               | 
               | You make quite an assertion based on what - the opposite
               | has already happened many times. Risk that has to be paid
               | for much later often is worth it, especially when it's
               | going to happen to a new team. Not that the risk for a
               | CEO is worth worrying about (for them) even if they were
               | to get caught, the term "golden parachute" exists for
               | reasons.
        
       | post_break wrote:
       | Intel lost Apple, Intel is losing the server market, next will be
       | laptops I assume when AMD can keep up with demand. That's going
       | to hurt.
        
       | ksec wrote:
       | The latest roadmap from TSMC now points to 2023 for 3nm. This
       | actually put Intel in the same time frame as TSMC. So
       | incidentally both Intel and TSMC will be on 4nm in 2022, and 3nm
       | in 2023.
       | 
       | Note: Intel 4nm is a Full, new Node while TSMC 4nm is an
       | optimisation of their 5nm.
       | 
       | Of course the roadmap and time table from Intel is often not a
       | reliable indicator and also doesn't tell you whether it is
       | product shipment or if they are only ramping. My guess is that
       | Intel is running as fast as they can to reach those target. That
       | is also not including capacity difference with node from both
       | companies.
       | 
       | I think Intel under Pat Gelsinger is making the same transition
       | as Andy Grove did to during his era.
        
         | tester34 wrote:
         | I'm getting kinda lost, it's almost 2022 already
         | 
         | did Intel skip 7 and 5nm?
        
           | cjblomqvist wrote:
           | They renamed their other nodes to cover those (and to better
           | align with the rest of the industry).
        
           | terafo wrote:
           | They changed their branding. Their 10nm node was renamed to
           | Intel 7, their 7nm is now Intel 4. Since amount of nanometers
           | doesn't really mean anything anymore that's good PR strategy
           | that nicely represents state of their nodes because density
           | on Intel 7 and TSMC 7nm is pretty similar anyway.
        
             | toast0 wrote:
             | I believe Intel didn't strictly rename Intel 10nm to Intel
             | 7, it's a refinement of Intel 10nm that is Intel 7 (they
             | were previously calling it 10nm+ if I recall correctly).
        
               | rconti wrote:
               | Shouldn't it be 10nm-? :)
        
           | mensetmanusman wrote:
           | There are very interesting ways that we could compare
           | architectures, but it would never get past the marketing
           | department and it might reveal capabilities that they would
           | rather have a secret, so we are stuck with a single
           | meaningless number.
        
           | mhh__ wrote:
           | Intel rebranded their x nm to be TSMC's y nm. This may seem a
           | bit subversive but it's not ridiculously unreasonable as the
           | nanometre figures are complete bullshit, and the density
           | measures are also sufficiently synthetic as to be mostly
           | useless when comparing a similar node anyway (i.e. there's
           | more to it than just shoving transistors on a chip)
        
         | mtgx wrote:
         | Intel has had trouble with deadlines over the past few years.
         | So I'd expect that delayed by 6-12 months.
        
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