[HN Gopher] TSMC, Bosch, Infineon, and NXP to build fab in Germany
       ___________________________________________________________________
        
       TSMC, Bosch, Infineon, and NXP to build fab in Germany
        
       Author : king_phil
       Score  : 686 points
       Date   : 2023-08-08 10:48 UTC (12 hours ago)
        
 (HTM) web link (pr.tsmc.com)
 (TXT) w3m dump (pr.tsmc.com)
        
       | AdamN wrote:
       | Sort of incredible that Germany is getting decade old technology
       | for this much investment.
        
         | ho_schi wrote:
         | Im rather sure _Robert Bosch_ and _Infineon_ are aware of what
         | chips they need. Obviously not the Zen 5, M3 or Meteor Lake.
         | 
         | Germany needs CPUs for the industry. Cars, machines, planes,
         | wind turbines and so on :)
         | 
         | But you cannot build Personal-Computers with them? That failure
         | is caused by Siemens (Siemens-Nixdorf) and AEG. In GDR/DDR they
         | were close to build a 386 compatible CPU. The remaining
         | knowledge is still somewhat available, Global Foundries in
         | Dresden.
         | 
         | But the CPUs for PC? Yes. Yes. Okay. Intel will build a Fab
         | there, too ;)
        
           | visarga wrote:
           | Nowadays you need AI chips in cars too.
        
             | croes wrote:
             | But cheap ones, not the best.
        
               | coolspot wrote:
               | Each Tesla car carries 100 TFlops, same as PS5 .
        
               | mrweasel wrote:
               | It's actually a little fun. HN is always quick to point
               | out when someone is over thinking software architecture,
               | but for chips we're apparently blind to the fact that
               | most of the chips in the world are pretty underwhelming,
               | but gets the job done.
        
         | jon_adler wrote:
         | They require functional safety. Certification can be very
         | expensive and take a long time. What seems old within the
         | consumer electronics market isn't necessarily old within the
         | automotive industry.
        
         | formerly_proven wrote:
         | GloFo Dresden next door does 22nm FDSOI already
        
         | r0b1n wrote:
         | The likes of Bosch/Infineon/NXP are not interested in bleeding
         | edge fabs, they sell embedded CPUs from very old fabs they
         | still have. So this is an advancement for them, and totally
         | sufficient for embedded stuff.
        
           | baybal2 wrote:
           | > totally sufficient for embedded stuff.
           | 
           | No, TSMC 22 has no eFLASH, expensive SRAM, lacking of analog
           | capability, lacks high temperature tolerance, and is tied to
           | multiple patterning design flow.
           | 
           | TSMC 40 on the other hand is the last portable node, _with_
           | MRAM, eFLASH, high temp, some mixed signal, RF, no MP, and
           | everything else your soul desires.
        
             | 55873445216111 wrote:
             | Infineon Aurix microcontrollers on TSMC 28nm have eFlash
             | and RRAM available as NVM.
             | https://www.infineon.com/cms/en/about-
             | infineon/press/market-...
        
             | [deleted]
        
             | r0b1n wrote:
             | Didn't know that.
             | 
             | Maybe they'll add the missing parts as chiplets?
        
         | Barrin92 wrote:
         | The biggest concern for Germany is chip supply for the
         | industry, especially the automotive sector, machinery, military
         | and so on. 28/22 and 16/12 chips are still going to dominate in
         | that sector for a long time.
        
           | luplex wrote:
           | that's if we don't expect Germany to become an AI powerhouse,
           | where GPUs are useful. Apparently this does not seem to be a
           | priority.
        
             | lm28469 wrote:
             | > Apparently this does not seem to be a priority.
             | 
             | It isn't for anyone besides HN/Twitter/&c. tech fanatics
             | tbh
        
             | oytis wrote:
             | 20 years forward - "The AI is uncharted territory for all
             | of us."
        
               | moooo99 wrote:
               | To be fair, fillable PDF forms from public institutions
               | still seem to be uncharted territory for large parts of
               | Germany.
        
               | LeonidasXIV wrote:
               | On the other hand: Why fill out PDF forms if you can just
               | send HTML forms and submit them directly to the
               | administration. This is how the Danish system works.
        
               | oytis wrote:
               | Or just use fax. That's how it works in Germany
        
               | Lionga wrote:
               | But you can only fax during opening hours which are
               | Tuesday 10:00 to 11:15
        
               | littlecranky67 wrote:
               | And during that time, you get an error report telling you
               | the remote fax is out of paper (true story).
        
             | numbers_guy wrote:
             | What lacks in Germany is not GPUs. In fact cluster time is
             | abundant for researchers at top tier research institutes or
             | unis. What lacks is private investment. The whole economy
             | is controlled by a bunch of old fucks who have no clue
             | about any kind of tech and no appetite for risk. Because of
             | the lack of private investment there are also no jobs in
             | the field.
        
         | Lionga wrote:
         | Habeck and his kleptomanic friends and family will get a nice
         | kickback later in life. Who cares if TSMC uses it for the
         | things they do not want to have back home anymore as they are
         | clearly getting to EOL.
        
         | Vespasian wrote:
         | They won't use that technology to produce mobile phones or
         | GPUs.
         | 
         | There are plenty of application were structure size,
         | performance and/or power draw doesn't really matter.
         | 
         | E.g. Automotive / Industrial applications
        
           | Cthulhu_ wrote:
           | To be pedantic, I think it does matter there, but the cost /
           | benefit tradeoff is in favor of the 10 year old processes.
           | 
           | And it can vary too, mass produced / generic chips can be
           | more cost efficient if they can make more of them on a single
           | wafer.
        
             | nordsieck wrote:
             | > the cost / benefit tradeoff is in favor of the 10 year
             | old processes.
             | 
             | I thought a big part of the reason why that's the case in
             | general is because the old fabs that house those old
             | processes have already been depreciated - customers
             | basically only pay for maintenance and the of raw
             | materials.
             | 
             | But that doesn't really apply to brand new fabs.
        
               | brmgb wrote:
               | R&D is a significant part of what you have to amortise.
               | I'm guessing they are going to pay the machinery
               | significantly less than if it was brand new. Part of it
               | might even be relocated from another fab. Yields should
               | also be better. That leaves the building but I'm guessing
               | the German state must be generous here and that should
               | help offset that.
        
           | crote wrote:
           | That's exactly the issue, isn't it?
           | 
           | The Chips Act was marketed as an attempt to bring back
           | "cutting-edge chips" to Europe, and to promote research and
           | innovation. In the end it turns out to just be a huge
           | government subsidy for a bog-standard fab which is _at least_
           | a decade behind what TSMC is building in Taiwan.
           | 
           | Great for automotive companies who want to strengthen their
           | supply lines, but pretty pointless when it comes to doing
           | what it was actually _supposed_ to do. Europe already has
           | plenty of fabs like these which did not require billion-euro
           | handouts.
        
             | Dalewyn wrote:
             | >The Chips Act was marketed as an attempt to bring back
             | "cutting-edge chips" to Europe,
             | 
             | You'll have to excuse me if I'm being daft, but I assume
             | this is not the CHIPS Act we have here in the US?
             | 
             | I'm aware Europe's trying (or has done) something similar,
             | but if it's called the Chips Act this is the first time
             | I've heard of it that way.
        
               | Vespasian wrote:
               | It is indeed called that
               | https://commission.europa.eu/strategy-and-
               | policy/priorities-...
        
             | junon wrote:
             | > Great for automotive companies who want to strengthen
             | their supply lines
             | 
             | That's great news for Germany then.
        
               | Lionga wrote:
               | If they want to produce more ICE cars for the next
               | decades yes.
        
               | WJW wrote:
               | 1. They do want to produce ICE cars for several more
               | decades, yes.
               | 
               | 2. It's not as if BEVs are chip-free, and most of the
               | chips used aren't ultra-high performance things that
               | require the very latest generation fab equipment.
        
               | pantalaimon wrote:
               | Tesla has a large factory in Germany too
        
               | myrmidon wrote:
               | No. Its irrelevant if you produce electric or combustion
               | vehicles (or even household electronics in general): The
               | biggest demand is for chips on an efficient (read: older)
               | process.
               | 
               | You are not going to use some 3nm EUV boondoggle process
               | just to pump out voltage regulators or sub-100MHz
               | microcontrollers, but you need tons of those for pretty
               | much every application.
               | 
               | Sure there might be four or five CPUs on a modern process
               | in a modern car, but there are COUNTLESS
               | simpler/slower/cheaper chips required that are made on an
               | older process and this is not gonna change anytime soon.
        
               | nolist_policy wrote:
               | If anything, BEVs have even more older processes built in
               | for high-power dc-dc conversion, motor driving, battery
               | management etc.
               | 
               | Less gigahertz and gigaflop, more kilovolt and
               | kiloampere.
        
             | croes wrote:
             | Marketing vs reality.
             | 
             | You can't tell the people you just want to subsidise the
             | automotive industry.
        
             | brmgb wrote:
             | Given the delay to get cars right now, I'm guessing Europe
             | has significantly less "bog-standard" fabs that you think
             | it does.
        
             | jasmer wrote:
             | [dead]
        
             | justinclift wrote:
             | Bear in mind that this could be a "thin edge of the wedge"
             | situation. Where they get this "older" node stuff up and
             | running, and _if_ it turns out to be going well _then_ they
             | can think about newer process /node sizes.
             | 
             | It's not a dumb approach.
        
               | nordsieck wrote:
               | > Bear in mind that this could be a "thin edge of the
               | wedge" situation. Where they get this "older" node stuff
               | up and running, and if it turns out to be going well then
               | they can think about newer process/node sizes.
               | 
               | I think that would be more credible if Global Foundries
               | didn't already have "Fab 1" up and running that has a
               | mature 22nm process.
        
               | justinclift wrote:
               | But Global Foundries doesn't have the ability to do
               | newer/smaller node sizes, so they can't "level up" at a
               | future time. That is, unless Global Foundries makes some
               | massive investments. Which they've not demonstrated any
               | willingness to do, nor competence at doing.
               | 
               | This deal with TSMC at least seems like it provides a way
               | forward with people that know how to execute. One that
               | the Global Foundries option can't credibly provide.
        
               | crote wrote:
               | Nothing is stopping GloFo from licensing 7nm and beyond
               | from Samsung, like they did for 14nm. Except indeed those
               | massive investments.
               | 
               | But TSMC isn't willing to make those investments in
               | Europe either. It's their goose that lays golden eggs,
               | and keeping it all in Taiwan makes a lot more sense from
               | a geopolitical perspective. The only reason they are now
               | building this fab in Germany is because it is ancient
               | technology to them and they are basically getting a free
               | fab out of it.
        
               | crote wrote:
               | The problem with that is that this is essentially just a
               | TSMC fab. If they wanted to, they could have easily used
               | a newer node. And there isn't even significant technology
               | transfer involved with TSMC having a 70% stake and there
               | _already_ being fabs with this level of tech in Europe at
               | GlobalFoundries and others.
               | 
               | There is pretty much no way forward for this. You'd have
               | a point if a European company managed to sign a
               | technology transfer for last year's node, but that's
               | simply not what is happening here.
        
         | dkjaudyeqooe wrote:
         | The older tech is a great deal. Instead of paying a huge
         | premium for smaller nodes you get low cost and keep the margin
         | for yourself.
         | 
         | Having the bleeding edge tech sounds great, but where are the
         | customers that are going to pay for bleeding edge output and
         | the countless billions of investment it takes to get set up to
         | produce it?
         | 
         | Decade old technology sounds very sensible.
        
         | nolist_policy wrote:
         | Silicium chips and transistors are used for so much more things
         | than cutting-edge computing. Germany is not really in that
         | business (yet) so this is more a move to get their current
         | supply-chain for automotive, machinery, etc. more independent.
        
         | raverbashing wrote:
         | A lot of the 'chip shortage' those past years was not for the
         | cutting-edge stuff, but for automotive/embedded devices
         | 
         | Not everything needs the 5nm cutting edge, and to be fair
         | calling
         | 
         | > 300mm (12-inch) wafers on TSMC's 28/22 nanometer planar CMOS
         | and 16/12 nanometer FinFET process technology,
         | 
         | old is a bit unfair
        
           | crote wrote:
           | 3nm has already hit mass production. Considering this fab
           | won't be ready for at least another two years, 2nm will have
           | hit mass production already.
           | 
           | 22nm dates back to 2012, and TSMC has been doing 14nm FinFET
           | mass production since 2014. So yeah, a decade behind cutting-
           | edge can indeed be called "old" when the entire point of the
           | Chips Act was to catch up with Asia and become a center for
           | innovation.
        
             | arcticbull wrote:
             | Considering the sheer magnitude of the cost of building out
             | a bleeding edge fab, wouldn't it make sense to start with a
             | somewhat older (but still incredibly useful) process node,
             | develop domain expertise and then iterate? Going from 0 to
             | 2nm is sure to yield little more than a boondoggle.
             | Catching up is going to be a decade long process - if not
             | longer. But you do have to start somewhere.
             | 
             | Plus, the only vendor of EUV lithography machines is likely
             | 100% committed for the foreseeable future. DUV machines are
             | much easier to get - you can go to ASML, Nikon, Canon and I
             | assume a few others - while you find some space on the EUV
             | order books.
        
               | crote wrote:
               | They are not coming from zero. This joint venture is 70%
               | TSMC, so it is essentially _guaranteed_ that they are
               | basically just going to copy /paste an existing TSMC fab.
               | There is not going to be any "catching up" when the
               | company you want to catch up with it _literally
               | yourself_.
               | 
               | Besides, there are already plenty of fabs in Europe at
               | these nodes at companies like GlobalFoundries. Getting
               | another one isn't going to be very useful in trying to
               | catch up, _especially_ when it is one from just before a
               | huge paradigm shift. It 's not going to teach them
               | anything about EUV, so they would be trying to catch up
               | from 7-8 nodes behind without even using the technology
               | needed to reach the cutting-edge.
        
             | RF_Savage wrote:
             | 3nm is not usable for many automotive things.
             | 
             | It just cannot take the voltages involved and fabbing
             | switching regulators or CAN bus transceivers on a 3nm
             | process would be a waste. Especially when a cheaper and
             | higher voltage capable 180nm or 300nm process is available.
             | 
             | Right tool (and process) for the right job.
        
           | rasz wrote:
           | and zero of the shortages were caused by lack of fab capacity
           | - companies cut orders for over a year. Old stocks got
           | depleted, prices skyrocketed, then companies reluctantly put
           | new orders and started selling at those inflated prices.
        
             | arcticbull wrote:
             | That's not exactly what happened. Manufacturers gave up
             | their fab capacity at the start of the pandemic to hedge
             | for a potential economic kerfuffle. That capacity was
             | immediately resold to other parties, and by the time the
             | folks who gave up their fab space realized things were
             | going to be okay and came back, it was too late. It really
             | was a fab supply shortage, but a situation of their own
             | making too.
        
               | rasz wrote:
               | Can you point at one/two examples of companies using this
               | freed up fab space? Where did all that silicon go to?
        
         | varispeed wrote:
         | MCUs are created using still relatively ancient tech and we
         | still have shortages of those.
         | 
         | Many chips don't need fancy new tech.
        
           | RF_Savage wrote:
           | Easier to make low power devices on older processes too. Much
           | smaller leakage currents and more robust.
        
       | NKosmatos wrote:
       | "...begin construction of the fab in the second half of 2024 with
       | production targeted to begin by the end of 2027".
       | 
       | It's good to see new fabs in Europe, but I think it's a bit late
       | and with "old" technology. On the other hand there are many other
       | areas in need of chips that will benefit from this in the coming
       | years.
        
         | KingOfCoders wrote:
         | Modern is better, but many industries are fine with "old"
         | technology. As the pandemic showed, the problem (for industry
         | and mass market consumer electronics) was not Intel/AMD/Nvidia
         | high end chips but chips for washing maschines (had to wait 7
         | (!) months for a dishwasher b/c Miele had no chips) and cars.
        
           | oplaadpunt wrote:
           | Smaller nodes also do not inherently have better performance
           | for all tasks. They bring performance penalties in some
           | regards, extra costs, and more complexity, which might make
           | something older like 65mm a far better choice
        
           | bluGill wrote:
           | Is modern really better? If you are waiting on a compile, or
           | running the latest game or - other performance critical task
           | of course it is. However for embedded systems older processes
           | are likely to result in chips that operate longer under harsh
           | conditions and so may be better. It depends on the
           | application.
           | 
           | I know where I work we have customers that run our products
           | at -70C and +50C, we can't run a lot of modern chips because
           | they fail our tests at those operating temperatures.
        
             | oplaadpunt wrote:
             | It isn't necessarily, especially if your chip involves some
             | analog or RF design, or must be robust. It is only for
             | increased compute power where the smalles nodes shine
        
       | steeve wrote:
       | I wonder why they chose the country with the second worst
       | electricity CO2 wise?
       | 
       | Unless it's for cars?
        
         | ramesh31 wrote:
         | > I wonder why they chose the country with the second worst
         | electricity CO2 wise?
         | 
         | Chip fab locations are about water and talent. Electricity
         | sources are pretty fungible. The former not so much.
        
         | ComputerGuru wrote:
         | Probably because they didn't care enough compared to other
         | factors?
        
       | KingOfCoders wrote:
       | What irony if chips bring wealth to saxony, when chip production
       | in the GDR was one of the reason it collapsed.
        
         | murkt wrote:
         | I'm not familiar with the story, can you elaborate a bit on the
         | chip production being a reason of GDR collapse?
        
           | LargoLasskhyfv wrote:
           | Maybe https://www.ddr-museum.de/en/blog/2016/gdr-1-megabit-
           | memory-...
           | 
           | and https://en.wikipedia.org/wiki/ZMDI ?
        
           | weystrom wrote:
           | Great video from Asianometry on this topic:
           | https://www.youtube.com/watch?v=cxrkC-pMH_s
        
             | adrian_b wrote:
             | While that video from Asianometry contains interesting
             | historical information, it does not include any evidence
             | for their thesis that the GDR's mismanagement of their
             | semiconductor industry was a greater contributor to the
             | country's bankruptcy than their mismanagement of all the
             | other branches of the economy.
             | 
             | If they would have directed some of the resources spent in
             | attempts to modernize the semiconductor industry to any
             | other economic activities, at least the same fraction of
             | the resources that were wasted in the semiconductor
             | industry would have been wasted elsewhere.
             | 
             | So there is no proof that this choice has been worse than
             | others. On the contrary, even if in GDR their efforts did
             | not result in the desired production capabilities, at least
             | they taught many engineers and technicians, so that this
             | made Dresden attractive after reunification as a place
             | where to invest in this field, until in the present with
             | this fab planned by TSMC.
        
               | KingOfCoders wrote:
               | Not sure, but the costs for chips a lot was probably in $
               | while other things were paid in (GDR) Mark, and $ was
               | very scarce.
               | 
               | [Edit] Couldn't find a research paper on GDR chip
               | production and costs in $ vs. Mark.
        
               | adrian_b wrote:
               | While they could not export towards Western countries,
               | semiconductor devices formed a significant fraction of
               | their exports to the Soviet Union and to the countries
               | dominated by the Soviet Union, i.e. to the other members
               | of the Comecon.
               | 
               | If the GDR had not used most of its resources for a
               | greater development in the domains of semiconductor
               | devices, precision mechanics and optics than most other
               | members of Comecon, it is likely that they would not have
               | been able to export much except food, which they did not
               | have enough even for themselves, while needing to import
               | a lot of resources that they did not have.
               | 
               | If Asianometry had made a video with the similar title
               | "How Semiconductors Ruined Intel", that title would be
               | closer to the truth, because during most of the last
               | decade the performance of Intel in developing
               | semiconductor manufacturing has been much worse than that
               | of the GDR.
               | 
               | Hopefully the woes of Intel will end this year with the
               | launch of the "Intel 4" process, but before that Intel
               | has succeeded in 6-7 years to transform an advantage of
               | 2-3 years in semiconductor manufacturing against all
               | others into a handicap of 2-3 years compared to the top
               | competitors.
               | 
               | By contrast, GDR has started with a handicap of at least
               | 10 years against USA (the US semiconductor industry has
               | been created in the middle of WW2, for the fabrication of
               | radar diodes) and after some 35 years it still had about
               | the same 10 years of handicap.
               | 
               | While GDR and the other communist countries have never
               | been able to reduce the technological gap between them
               | and USA, they also never had any such tremendous fall
               | behind, like Intel, where it seems that the management
               | methods and the internal cooperation between divisions
               | have not been better than those that were rightly
               | criticized for GDR.
               | 
               | Unfortunately bad management is not an exclusive feature
               | of the "planned" communist economies, but it becomes more
               | and more frequent in the present economies that have
               | become dominated by quasi-monopolies everywhere.
        
               | KingOfCoders wrote:
               | (I have no clue about the stuff you say about Intel)
               | 
               | I again couldn't find a lot of data on the exports you've
               | mentioned, but I do guess if it's CPUs it was mainly
               | reverse engineered, illegally produced Z80 ("U880").
               | 
               | It looks like the GDR did reverse engineer a 80286
               | ("U80601") and started limited production in 1989, in
               | very low numbers because of production problems (The West
               | was using 486 at that point). So it is unclear how
               | reverse engineering of CPUs would progress
               | Z80 8.5k transistors       286 134k transistors       386
               | 275k transistors (+ 120k for 387)       486 >1200k
               | transistors (the 486 had an FPU)
               | 
               | (As the GDR also illegally cloned DEC MicroVax systems,
               | there is a "U80701" MicroVax clone with 130k transistors,
               | same like the 286 clone. This doesn't seem to have gone
               | into production)
               | 
               | The reason the GDR could not pull it off where manifold.
               | First the Eastern block countries tried a different
               | concept in IT in the 50s and 60s compared to the West,
               | that proved not as practical. Second the GDR lost time by
               | reverse engineering and spending money on smuggling CPUs
               | and machines. Third the West had a huge network of
               | companies building a supply chain for production of
               | semiconductors. The GDR (or Eastern block) would have
               | needed to bootstrap the whole supply chain by it's own.
               | The Western supply chain in semiconductors was probably
               | 1000x the value and people the GDR did or could spend.
        
           | KingOfCoders wrote:
           | The collapse of the GDR has many reasons, mostly it ran out
           | of money during the 80s. There have been several reasons for
           | running out of money, e.G. taking on massive credit in the
           | 70s to produce more consumer goods and build flats (the
           | reason Honecker was very popular after his coup against
           | Ulbricht), which it had problems to pay back in the 80s. Also
           | minor things like spending millions on importing coffee (all
           | experiments to replace coffee with something else failed -
           | Vietnam is one of the worlds biggest coffee exporters because
           | of GDR investments that came too late).
           | 
           | Another reason was Russia cutting cheap oil during the 70s
           | after the oil shock. The GDR had imported cheap oil from
           | Russia, was refining it and selling it with high margins to
           | the West for $/Deutsche Mark. That source of money dried up
           | in the 80s.
           | 
           | With sparse resources, the GDR was between a rock and a hard
           | place. For modern production it needed chips, reverse
           | engineering western chips e.G. Z80s (reverse engineered chip
           | called U880 in the GDR) or smuggling chips was very expensive
           | (~5-10x the price). Building chips on their own was also
           | expensive. But they decided to invest billions into home
           | grown chip production (they smuggled a whole factory via
           | Austria, see "Red Fini") leading to the famous 1mbit chip
           | "U61000" - which was old at that time, also the Japanese
           | produced the same amount of chips in a day that the GDR was
           | able to produce in a year. So things went nowhere.
           | 
           | But those billions were not available for other things.
           | 
           | Without money ($, Deutsche Mark), in the 80s to pay back
           | credits to western banks a lot of vegetables, fruits and
           | consumer products like clothing and washing maschines were
           | exported to the West (most of the fruit production of the GDR
           | around West Berlin went to West Berlin, many products in the
           | West German QUELLE catalogue - like Sears - were made in the
           | GDR). These products were missing in local shops, shelves
           | were often empty, especially outside the large cities like
           | Berlin, Leipzig and Dresden.
           | 
           | Additionally factories in the 80s in the GDR were in a very
           | bad state (my father in law was head of production in a large
           | machine factory in East Berlin during that time), lots of
           | stuff was being stolen on a constant basis, maschines were
           | old and lacked computer support (see above). This again
           | reduced available consumer goods.
           | 
           | Because consumer goods were scarce, when things were
           | available people bought more than they needed, leading to
           | more scarcity (as seen during the pandemic). It is said that
           | every household in the GDR had a second car as spare parts
           | (another example are agricultural factories hoarding
           | harvester spare parts, so when broke down, spare parts where
           | hard to get).
           | 
           | Missing consumer goods in the GDR led people to leave their
           | jobs in factories whenever something was available, e.G. rain
           | boots, which reduced productivity even more.
           | 
           | In the end so many things were missing that people mass fled
           | the GDR when Hungary opened the border.
           | 
           | All this together made the Central Committee believe
           | everything is lost (book to read in German "Das Ende der SED
           | - Die letzten Tage des Zentralkomitees" with meeting notes
           | from the Central Committee), and the Russians not willing to
           | come to help with tanks this time [0] (like they did in 1953
           | to kill Germans to keep the communists in power in East
           | Germany) power was transfered to the people leading to
           | reunification.
           | 
           | [0] For comparison: When Poland went bancrupt in 1980/1981
           | Russia and the GDR were near an invasion - which Poland
           | prevented with a military coup.
        
             | murkt wrote:
             | Thanks so much, really informative! I need to read up on
             | economies of Warsaw bloc countries. For some reason I've
             | never even heard about a Poland bankruptcy in 1980-81, and
             | I'm from Ukraine (so I'm more than familiar with goods
             | deficit, sadly).
        
               | [deleted]
        
               | KingOfCoders wrote:
               | Yes do! I think too many different things have been
               | lumped together in "the fall of the iron curtain". Every
               | country of the "Warsaw Pact" (NATO speak) was in a
               | different state with different problems, e.G. Poland had
               | a strong opposition with the Solidarnosc movement, the
               | GDR had some opposition with a environmental movement
               | (which later became the freedom movement) (I don't know
               | about Bulgaria and Hungary etc).
               | 
               | What unified them was the threat of the Soviet Union to
               | intervene on behalf of their governments if there would
               | be danger to the state.
               | 
               | When that threat broke away with Gorbachev, the states
               | collapsed at the same time in different ways (e.G.
               | Ceausescu was killed, Honecker went into exile) and for
               | different reasons (although the overall driving force for
               | more wealth and freedom was the same).
        
       | nntwozz wrote:
       | Just want to share these relevant videos from Asianometry:
       | 
       | How Semiconductors Ruined East Germany
       | 
       | https://youtu.be/cxrkC-pMH_s
       | 
       | Why Europe Lost Semiconductors
       | 
       | https://youtu.be/5ZdmS-EAbHo
       | 
       | Europe's Lost Decades in Semiconductors
       | 
       | https://youtu.be/PpSdytrNEBg
       | 
       | It's great to get chip manufacturing back to Germany after all
       | the struggles, even if it's not cutting edge.
        
         | hospitalJail wrote:
         | I watched a few of their videos, but I felt like it was an
         | anti-china propaganda outlet.
         | 
         | I'm def not a fan of the CCP, so I loved watching the videos,
         | but I felt like I was getting brainwashed.
         | 
         | Does anyone know how valid/factual their videos are?
        
           | flohofwoe wrote:
           | The video about the East German chip industry is well
           | researched. Making the chip industry investments responsible
           | alone for the collapse of the GDR is a bit click-baity (it
           | was at most one contributing factor).
        
           | nntwozz wrote:
           | As factual and valid as you could hope for. I find his work
           | very thorough.
           | 
           | Here's a video about China's Gallium & Germanium Export
           | Controls:
           | 
           | https://youtu.be/J4XU-QxXJMw
           | 
           | I didn't find it anti-China, neither are his other videos in
           | my opinion.
           | 
           | According to the transcript below Jon Y. is half
           | Taiwanese/Hong Kong, make of that what you will.
           | 
           | https://www.manifold1.com/episodes/jon-y-asianometry-on-
           | semi...
        
         | tmoneyplease wrote:
         | Glad to see many fans of Asianometry.
        
       | sergiotapia wrote:
       | If enough of these pop up Taiwan is cooked right? Is there
       | anything Taiwan is doing to try to stop these efforts? Also in
       | terms of the world security which is preferable:
       | 
       | 1. Have many fabs and derisk by diversification?
       | 
       | 2. Keep Taiwan safe and chest-bump china?
        
       | DeathArrow wrote:
       | 28nm is 'advanced semiconductor manufacturing'? Did they use
       | ChatGPT for the press release, or what?
        
         | runeks wrote:
         | Just because it isn't bleeding edge doesn't mean it isn't
         | advanced.
        
       | zsz wrote:
       | This is quite a surprise. Germany is currently reeling from poor
       | economic conditions including high inflation rates, skyrocketing
       | energy costs, a measure of pessimistic disillusionment vis-a-vis
       | their elected leadership, etc. This is also related to a general
       | sense that businesses are exiting the German market due to
       | burdensome regulations and rising cost of doing business (in
       | large part due to spiraling energy costs). I am no expert, but
       | this announcement stands in stark contrast to said premises--and
       | I can't help but wonder if this move might not be at least in
       | part politically motivated. The facts as they currently stand:
       | Germany considers itself a trading partner with China, but is
       | aware of the rising imbalance in competitiveness (significantly
       | due to phasing out of ICE vehicle manufacturing, where they held
       | a significant lead, and simultaneous phasing in of BEV
       | manufacturing, where China holds significant advantages, both in
       | accrued institutional knowledge and access to requisite raw
       | materials). At the same time, the German leadership coalition has
       | been frustrated by the rising pushback against the Green
       | transformation of the German economy, which they view as non
       | negotiable, but is objectively a non-trivial factor of the
       | economic malaise.
       | 
       | Let's say TSMC does manage to build a fab before 2027 (the year
       | China is expected to complete the modernization of their military
       | and launch their campaign against the island of Formosa's
       | governing body, aka the Taiwanese government). How might such an
       | extravagant outlay of investment funds (which could significantly
       | improve the economic outlook in Germany and take a lot of
       | pressure off the existing government) impact Germany's
       | relationship with China in the crucial near term (the next few
       | years)?
       | 
       | Let's not forget, for decades the CCP worked strategically on
       | bringing about the reverse: isolating the ROC government by
       | engaging in lending practices that sometimes resulted in
       | situations where they could use this leverage to promote a
       | gradual deprivation of the ROC's status as an officially
       | recognized governing body (which has shrunk over the years to a
       | mere 11 or even fewer nations).
       | 
       | Of course it isn't as if Germany's support would significantly
       | affect the CCP's (meaning, Xi Jinping's) plans of Chinese
       | Rejuvenation (wherein bringing Taiwan under heel is a non
       | negotiable component), considering that even the US' increasingly
       | overt support has had no effect on what the CCP has always viewed
       | as an inevitability. Conversely, as the Ukraine debacle has
       | indisputably demonstrated, even indirect support (especially from
       | a Western ally) has a profoundly disruptive effect on the
       | expected development and eventual outcome of any military
       | engagement.
       | 
       | Also, as some may still remember, one of the principal factors
       | that led to China's significant manufacturing modernization was a
       | somewhat similar deal, wherein China "bailed out" a prominent US
       | manufacturer (Boeing?) that was close to bankruptcy, by agreeing
       | to purchase several billion dollars' worth of civilian airplanes,
       | and in return being handed the high precision tooling
       | infrastructure that's indispensable in the manufacture of high
       | tech machinery (because of the military/national security
       | implications, this required political support at the highest
       | levels of government, meaning presidential and bipartisan
       | support). I am suggesting this could be analogous, differing
       | chiefly in the type of benefit that is gained by the other party,
       | as a result. For China, it was high precision tools, while for
       | the 23 million inhabitants of the island of Formosa (who as a
       | group, if not a sovereign nation already dominate the
       | semiconductor industry) it may well be a tactically swift
       | reversal in international standing (something that barely
       | registered at all until very recently, but then rapidly expanded
       | into an all encompassing existential crisis rivaling their defeat
       | at the hands of the Chinese communists, 70 years prior).
        
         | rdsubhas wrote:
         | You have talked about everything: climate, inflation, energy,
         | green, politics, Germany, china, US, past, future,
         | rejuvenation, taiwan war, ukraine war, boeing, partisan,
         | communism, western allies, etc etc etc.
         | 
         | Everything except simple current business need.
        
         | locallost wrote:
         | The energy costs are not skyrocketing, they've been steadily
         | going down for a while now. Plus, it's not really an
         | exclusively German problem.
        
       | alecco wrote:
       | This smells of government-subsidized terrible ideas. German
       | energy costs, land costs, lack of water, crazy high taxes, and
       | anti-business governments.
       | 
       | OTOH Netherlands would make a much better option in almost every
       | angle. And add having ASML engineers around the corner.
        
         | mytailorisrich wrote:
         | Strategically, if Germany gets too much on its territory the
         | other EU countries should worry, especially France and Italy.
        
           | dontupvoteme wrote:
           | France has Mistral, it might actually be a perfect 1-2 EU
           | combo, the French do the aesthetics and the Germans do the
           | engineering.
        
             | mytailorisrich wrote:
             | [flagged]
        
               | laserdancepony wrote:
               | [flagged]
        
               | dontupvoteme wrote:
               | I'm complementing them both, I don't understand.
               | 
               | Yes, It's a sterotype to say that the French have great
               | aesthetics/are good at "art" and Germans have great
               | engineering/are good at "maths and science", but it's a
               | positive one for both.
        
         | rottencupcakes wrote:
         | As a dumb American, can you help explain how energy costs, land
         | costs, and water supply can be that significantly different
         | across an open border?
        
           | KingOfCoders wrote:
           | I would assume land costs are higher in NL, as there is less
           | (I don't think Tesla paid a lot for the land) water in
           | Germany depends on the region (but even Tesla in a dry region
           | seems to do fine, although there are protests), there is more
           | water in the south and less in the north, but again more near
           | the coast (where I live), Netherlands has 26% corporate tax,
           | Germany has 23% to 32% corporate tax, depending where you are
           | (federalist state, some portion is determined by
           | municipalities).
           | 
           | Energy prices are currently high b/c a lot is produced by gas
           | powered plants, but as Germany peaked renewables at 82%
           | lately, and new renewables are very cheap (there are solar
           | plants popping up everywhere here), energy should not be a
           | problem (chip production is not aluminium or fertilizer
           | production).
           | 
           | The main reason TSMC builds there is that there are already
           | lots of chip makers and knowledgeable staff to hire (and
           | state subsidies, which if correctly used can be a good thing,
           | Bavaria made the transition from an agricultural country to a
           | high tech country with state subsidies, money transfers from
           | the richer states in Germany to Bavaria - of course if used
           | badly are just lost without effect).
        
           | arlort wrote:
           | > As a dumb American
           | 
           | This is one of the most annoying openings to a sentence you
           | could device, just fyi
           | 
           | As to the why. (With the premise that the comment you're
           | replying to is overstating it)
           | 
           | An open border is pretty irrelevant to all of the above, more
           | relevant is that both are in the EU. So you can somewhat
           | imagine them as US states on steroids. They set their own
           | taxes with a large degree of freedom, devise their own
           | policies with a large degree of freedom etc
           | 
           | - energy costs are a factor of market price and taxes, the
           | electricity market is the same but taxes on energy can impact
           | differently - land costs are fully dependent on factors that
           | have nothing to do with open borders or the EU, just
           | local/national taxes and zoning etc - water supply depends on
           | the geography/geology of the area. I don't know if they're
           | that different but I don't see why they couldn't be
        
           | r0b1n wrote:
           | All those are regional monopolies by law or by fact. You
           | cannot move land, so land prices will always be regional.
           | Energy and water networks are local monopolies, usually owned
           | by the municipality or a local company monopoly. With
           | electricity, you might have some choice, that is, you rent
           | the power line from the local monopoly and buy the
           | electricity from one of several companies. However, the
           | choice is limited to companies serving your area, and the
           | exact rules and companies strongly differ between European
           | nations.
        
           | jsnell wrote:
           | All of those vary significantly between US states too.
        
           | surgical_fire wrote:
           | Each country has their own energy and water providers, land
           | taxes, etc.
           | 
           | There are a bunch of regulations on how companies can operate
           | in the economic block, but it's still a bunch of sovereign
           | countries there.
        
         | KingOfCoders wrote:
         | I wouldn't build factories in a country that's going to sink.
        
           | dontupvoteme wrote:
           | "God created the Earth, but the Dutch created the
           | Netherlands"
        
           | surgical_fire wrote:
           | Most of the Netherlands is already below sea level. This is a
           | non-issue.
        
           | rs999gti wrote:
           | The Dutch have beat the sea back for hundreds of years. They
           | will be fine
        
             | eldaisfish wrote:
             | they can keep the sea out but they cannot keep the river
             | out. Climate change will lead to flooding and ice melt on
             | the upstream Rijn and most of that water ends up in the
             | netherlands.
        
               | Moldoteck wrote:
               | cannot keep the river out - said who?
        
         | oytis wrote:
         | ASML still has engineers in Germany. And it's EU anyway.
        
         | lispm wrote:
         | > anti-business governments
         | 
         | Germany has around Dresden one of two regions in Europe with a
         | large cluster of chip industry.
         | 
         | https://en.wikipedia.org/wiki/Silicon_Saxony
         | 
         | ASML buys key equipment in Germany: optics from Zeiss and
         | lasers from Trumpf for EUV lithography.
         | 
         | Intel builds up chip production in Magdeburg, Infineon in
         | Dresden, Wolfspeed in Saarland, Bosch in Dresden and Reutlingen
         | and now TSMC in Dresden.
        
       | spdy wrote:
       | Just out of curiosity how hard would it be to re-fit such a
       | foundary to modern <5nm cpu fabs with ASML/Zeiss directly around
       | the corner.
        
         | crote wrote:
         | Literally impossible.
         | 
         | You don't re-fit a fab, you build it from scratch. There is
         | very little technological overlap where it matters due to the
         | shift to EUV. You'd essentially have to scrap >75% of the fab
         | to fit in the new equipment.
        
           | RF_Savage wrote:
           | Not only that, but the fab undergoing the 2 - 5 year refit
           | would also not be in full production capability. So there is
           | the revenue loss in addition to everything else. and suddenly
           | just building new makes even more sense.
        
             | hospitalJail wrote:
             | Not everything needs cutting edge chips.
             | 
             | Heck, I can use crappy chips for every home appliance and
             | home IOT device.
             | 
             | Sure I want high end stuff for my laptop so I can do AI,
             | but that is just 1 application.
        
         | theK wrote:
         | There is a YouTube channel called asianometry which did some
         | videos about UV lithography. Form what I remember the processes
         | vary significantly in each generation so that there probably is
         | little to no real overlap.
         | 
         | I'm no expert though so might be off by a mile here.
        
       | dav_Oz wrote:
       | For those unfamiliar with the region (Saxony, Dresden):
       | 
       | A registered association ( _e.V._ in German) bluntly named
       | "Silicon Saxony e.V." (est. in 2000) with over 450 members
       | headquartered in Dresden pretty much sums up the infrastructure
       | and ambition.[0][1]
       | 
       | As pointed out the process _TSMC's 28 /22 nanometer planar CMOS
       | and 16/12 nanometer FinFET process technology_ (fabrication will
       | begin in 2027) is not "cutting edge" but set to satisfy the
       | (local) demand [2] mostly for the automotive industry. I guess a
       | good conservative foothold given the current
       | economic/geopolitical environment, but it's not like an
       | innovation/investing boom or something.
       | 
       | However from a perspective of a young student, Saxony/Dresden -
       | as for now - is pretty inexpensive as compared to Berlin, Hamburg
       | or Munich and has ample opportunities (TU Dresden, Fraunhofer,
       | MPI, Helmholtz Zentrum ...).
       | 
       | [From personal experience I find the people in Saxony (Leipzig,
       | Dresden) have a more deep-rooted skepticism towards the federal
       | government (or any centralized entity ruling over them) which can
       | lead to a good thing - interesting perspectives/lively
       | discussions or depending on your position less good - leaning
       | more to the political (far) right.]
       | 
       | [0]https://en.m.wikipedia.org/wiki/Silicon_Saxony
       | 
       | [1]https://silicon-saxony.de/
       | 
       | [2]https://en.m.wikipedia.org/wiki/2020%E2%80%932023_global_chi..
       | .
        
         | coryfklein wrote:
         | In How Asia Works[0], they contrast how Malaysia tried to
         | modernize by jumping straight to high-tech steel factoris with
         | how South Korea modernized by starting small - basically by
         | making shitty cars - then scaled their way up. Turns out the
         | latter simply works much better.
         | 
         | My take, if you want to have a bleeding edge semiconductor
         | industry in your country, first start by trying to build a
         | boring, vanilla, outdated semiconductor industry. If you can do
         | that, then try incrementally making it competitive with global
         | markets. (Yes, this requires tariffs _initially_ to bootstrap
         | the process, otherwise nobody will by your shitty overpriced
         | semiconductors.)
         | 
         | [0] https://astralcodexten.substack.com/p/book-review-how-
         | asia-w...
        
           | PicassoCTs wrote:
           | Ahistoric nonsense. Its just that south-Korea is at a empire
           | gradient. One empire borders another empire. Which either
           | means you gets you eternal proxy wars - or you get propped
           | up, by the competition of the empires and can milk that sweet
           | soft-power gradient for benefits. You get preferable trade-
           | agreements, even if you use protectionism. You get other
           | sweet deals. Look at all the countries who made it, dwelling
           | along the fault lines of the past and the present. Germany.
           | Turkey. Austria. Italy.Hungary. Greece. Japan. China. South-
           | Korea. Soon Ukraine. The list goes on and the reason has
           | little todo with strategy. You cant plan for location.
        
             | mapgrep wrote:
             | No comparison between the excellent economic growth of
             | South Korea and that of Greece, Hungary, Austria, or Italy
             | going back to either cold war or post cold war days,
             | despite this hypothesis of "empire gradient". If you google
             | "World Bank GDP growth <countryname>" you can find charts
             | back to 1961.
             | 
             | South Korea exports consumer goods to the large US market,
             | this has been a massive fuel for their growth. They
             | followed in Japan's footsteps (and China, for a time at
             | least, followed in theirs). I can't think of a single
             | manufactured product out of Greece, Hungary, Austria and
             | few from Italy to the US.
             | 
             | Being on an "empire gradient" is just an arbitrary way to
             | look at a country.
             | 
             | You know who else is on an empire gradient? North Korea.
             | Afghanistan. Belarus. You're not even specifying which side
             | of the empire gradient. Maybe being on the authoritarian,
             | communist side did not work out so well for many countries?
             | 
             | I think what matters for South Korea is moving steadily
             | toward more democratic governance, embracing capitalism,
             | and proximity and historic ties with Japan (not always
             | pleasant, obviously, but ties nonetheless) at a time when
             | Japan was developing robust trade with the US and when
             | Japan's own consumer sector was booming, providing another
             | market for Korean firms.
             | 
             | Korea has absolutely followed the pattern of moving
             | steadily up the value chain, for example in consumer
             | electronics, in autos.
        
           | s_dev wrote:
           | The car industry in Germany already makes a huge number of
           | chips for cars -- they just aren't as sophisticated or as
           | small as the ones made in Taiwan suitable for personal
           | computers so by your own logic they have followed the South
           | Korean model already.
        
             | ckozlowski wrote:
             | I think the analogy might not fit here too well. While
             | Germany hasn't had a current node fab in country for a
             | while, they have in the recent past (AMD/Global Foundries
             | Dresden comes to mind). I don't think it's at all like
             | they're building an industry from scratch.
        
           | hutzlibu wrote:
           | Dresden actually has a history with making chips:
           | 
           | https://en.m.wikipedia.org/wiki/VEB_Robotron
        
           | onlyrealcuzzo wrote:
           | How do they know the latter works out better vs South Korea
           | just executed better?
           | 
           | Like what if SK & Malaysia took the opposite approaches? How
           | do we know that SK wouldn't still have been the successful
           | one, and we'd be saying everyone should take the opposite
           | approach because that's what SK did and it worked?
        
           | ajmurmann wrote:
           | You do the cheap manufacturing to get from low-income to
           | medium-income. Once at that level you need skilled workers to
           | get to high-income. If you don't have these, low-cost jobs
           | will move to other countries affected you are trapped.
           | Germany already had a highly educated workforce and is high-
           | income. No need to go back to square one.
           | 
           | Source: Invisible China by Scott Rozelle which does a great
           | job explaining economic development and comparing different
           | countries.
        
         | PicassoCTs wrote:
         | https://www.youtube.com/watch?v=cxrkC-pMH_s
         | 
         | As always its a little more then that..
        
         | suction wrote:
         | [dead]
        
         | jupp0r wrote:
         | Having lived there for a decade, I must point out that you are
         | painting a very one sided picture of the region. It's also a
         | hot spot for Germany's populist right.
         | 
         | I've witnessed visiting Indian colleagues of mine being
         | threatened on the street for having dark skin and racist
         | demonstrations are a weekly occurrence. I eventually moved away
         | (among other reasons) because I didn't want my kids to grow up
         | in this environment.
         | 
         | It was quite difficult to hire international talent there for
         | the same reasons.
         | 
         | The city itself and university are super nice though.
        
           | blueflow wrote:
           | I only ever see crying about racism in Dresden in the Media
           | and on HN.
           | 
           | Is this an actual thing or just something pushed up because
           | victimhood is idolized too much? The blue collar workers here
           | are diverse af.
        
             | pineaux wrote:
             | Very mature way of saying it: "crying"...
             | 
             | Good flame-bait.
        
               | blueflow wrote:
               | Propose a better wording
        
           | outside1234 wrote:
           | Isn't this a rampant problem across Europe thought?
           | 
           | I went on a beach vacation with some French friends and was
           | sort of stunned/apalled at the sort of non-stop "it is all
           | the muslim/immigrants" fault talk.
        
             | carlhjerpe wrote:
             | In Europe it's the muslims, in the US it's the mexicans, in
             | $place it's $group.
             | 
             | French people are known to be rather nationalist though (In
             | the same way US Americans are), but a rampant problem? I
             | have to disagree, it's just like the rest of the world,
             | people need their scapegoat.
        
           | Panoramix wrote:
           | > I've witnessed visiting Indian colleagues of mine being
           | threatened on the street for having dark skin and racist
           | demonstrations are a weekly occurrence.
           | 
           | So, like the US?
        
             | questime wrote:
             | I've lived in Texas for 30 years and I've haven't seen
             | anything like what you see in Europe in terms of racist
             | demonstrations and blatantly racist political
             | organizations. The few weeks of my life I spent in Germany
             | felt far more discriminatory. There is nothing like the AfD
             | in the US. The funny thing is while Racist Xenophobia is a
             | huge issue, there is a ton of Xenophobia against various
             | eastern europeans as well.
        
               | rospaya wrote:
               | > There is nothing like the AfD in the US
               | 
               | Because white nationalism is more and more becoming part
               | of the mainstream. GOP is perfectly capable of hosting
               | moderates and quazi-nazis at the same time.
        
               | questime wrote:
               | I don't believe this at all - the GOP is getting more and
               | more diverse and there is no explicitly racist GOP
               | policy. This is untrue for European ethno-nationalist
               | parties. Sure there maybe a couple of closet ethno
               | nationalist in the GOP but they would be thrown out if
               | they said the stuff their Euro counterparts say in the
               | open. There's also the fundamental reality that because
               | of the 2 party system and the demographics of this
               | country that the GOP could never become an
               | ethnonationalist party. Maybe unless PoC become white
               | supremacists themselves like the Chapelle show skit :D.
        
             | jupp0r wrote:
             | The US is a very homogeneous country. I live in a very
             | liberal part of it.
             | 
             | There are probably places with similar problems although I
             | can't name any. Can you?
        
               | Strom wrote:
               | I've heard Harrison, Arkansas as an example.
               | 
               | [1] https://en.wikipedia.org/wiki/Harrison,_Arkansas
               | 
               | [2] https://www.youtube.com/watch?v=ltmlvk9GAto
        
           | FirmwareBurner wrote:
           | Question: does that mean there are no indian restaurants in
           | Dresden?
        
             | mainframed wrote:
             | There are. Why wouldn't there be?
             | 
             | There are a lot of minorities in Germany, which (sadly have
             | to) accept daily racism.
             | 
             | Thankfully, at this point violence against minorities (~800
             | right extremists violent crimes in 2022 in whole Germany)
             | is not as high such that people consider moving away.
             | 
             | And if you get a job there and this is your ticket into
             | immigration, probably a lot of people will accept this to
             | get German citizenship. Finally, this will open you access
             | to all the working places in Europe.
             | 
             | My hope (as a West German) is that investments like this,
             | will increase East-Germany's economy such that they are
             | finally equal in terms of economic wealth, which is a large
             | factor for racism/extremism.
             | 
             | Same with opposing climate change laws.
        
               | OO000oo wrote:
               | > _My hope (as a West German) is that investments like
               | this, will increase East-Germany 's economy such that
               | they are finally equal in terms of economic wealth_
               | 
               | Is this a bad joke? Is it possible that you actually
               | don't comprehend the ramifications of eternal human labor
               | trafficking?
        
               | mainframed wrote:
               | > Is it possible that you actually don't comprehend the
               | ramifications of eternal human labor trafficking?
               | 
               | Probably not. I don't even know what it means/you mean.
        
               | OO000oo wrote:
               | When rich nations destabilize poor nations and
               | incentivize cheap labor to migrate to the rich nation.
        
               | t43562 wrote:
               | Poor nations are exceptionally good at destabilising
               | themselves - as a person from one of them. The idea that
               | they are getting mistreated would be music to the ears of
               | our ruling elites - perhaps hinting that they might get
               | their "virtual slaves" back from Europe.
        
               | zymhan wrote:
               | You might get more traction calling it "brain drain",
               | since that's the more common term in at least the US.
        
               | ajmurmann wrote:
               | > eternal human labor trafficking
               | 
               | What does this mean? Are there people being trafficked in
               | eastern Germany?
        
               | OO000oo wrote:
               | Yes, and it's nothing new.
        
               | martimarkov wrote:
               | Apart from just your statement this is the first time I
               | hear about this. I mean there is trafficking everywhere
               | but you statement makes it sound like it's on a much
               | grander scale. Care to provide more info?
        
               | rojosewe wrote:
               | He's referring to the difference in wealth between East
               | and West Germany which is arguably the cause of many
               | political and social issues in Germany. The influx of
               | money into the region could reduce the disparity.
               | 
               | My guess is that you are referring to the difference in
               | wealth between India and Germany. I'm not sure that the
               | pearl clutching was helpful. It would have been better to
               | clarify your assumptions or If indeed you were talking
               | about Germany internal issues then clarify how labor
               | trafficking is a factor here. We'll all be better for it.
        
               | FirmwareBurner wrote:
               | _> The influx of money into the region could reduce the
               | disparity._
               | 
               | Money in the region would help but I don't see it
               | happening since Poland is just a few km away and a more
               | lucrative target for attracting investments from west
               | Germany due to having less red tape, and lower taxes and
               | regulations.
               | 
               | East Germany can't compete with that so it seems it be
               | forever be this "desert" in between west Germany and
               | Poland where nobody wants to live and invest.
               | 
               | I see this as a fault of the German gov for not making
               | east Germany an attractive place for investors.
        
               | rojosewe wrote:
               | This post is literally about building a "large" factory
               | for highly specialized workers in East Germany. The
               | influx will be there, whether that's enough to solve the
               | issue it's a different topic. Anyway, I was referring to
               | the original commenter's intention, not my personal
               | opinion.
        
               | FirmwareBurner wrote:
               | _> The influx will be there, whether that's enough to
               | solve the issue it's a different topic._
               | 
               | It's not. I've seen this play out before in my poor home
               | town that become a hotspot for tech investments in the
               | span of 10 years.
               | 
               | All those new jobs in the semi industry will require some
               | skills and education, and people who have that kind of
               | skills and education, are (usually) not racists to attack
               | people on the streets based on their color and go to
               | racist protests, but the contrary, tend to be well spoken
               | and liberal.
               | 
               | It will simply increase the inequality between the
               | uneducated racist locals and the well educated foreigners
               | who come for those well paying jobs and raise rent prices
               | and cost of living, throwing more fuel on the racist
               | fire, and pointing the target on the foreigners for being
               | to blame for making life more expensive for the locals.
               | 
               | This issue is solved through education and career re-
               | orientation opportunities, not by bringing some high end
               | jobs that are out of reach for those locals anyway.
        
               | FirmwareBurner wrote:
               | _> There are. Why wouldn't there be?_
               | 
               | Because he said Indians are attacked on the street in
               | Dresden.
               | 
               | If that's the case why would you move and open a
               | restaurant there if you're Indian?
               | 
               | Or was he exaggerating the issue?
        
               | pavlov wrote:
               | There were 13,000 Jews in Leipzig in 1933. Surely
               | antisemitism wasn't a problem because so many of them
               | chose to live there.
               | 
               | (In 1989 the city's Jewish population was 30.)
        
               | hutzlibu wrote:
               | "If that's the case why would you move and open a
               | restaurant there if you're Indian?"
               | 
               | Because some things do not show immediately and
               | officially all is fine in Dresden. Also the racism that
               | was hiding for some time now shows itself very openly.
        
             | hutzlibu wrote:
             | There are, but why is that related? You mean because they
             | all did not burn down yet, proofs the racism is not so bad?
        
             | krater23 wrote:
             | Oh there are. When you want a really good one, just go to
             | the one on the Alaun Park.
        
           | dav_Oz wrote:
           | Sorry to hear that. I wasn't trying to downplay the issue, I
           | was just recounting from own experiences just visiting the
           | cities (Leipzig, Dresden) multiple times.
           | 
           | > _The city itself and university are super nice though._
           | 
           | Then, I hope this will get more widespread :)
        
             | jupp0r wrote:
             | I wasn't implying you downplayed anything, just wanted to
             | add nuance to your insightful comment.
        
           | flo123456 wrote:
           | Still living here I must point out that you are pointing an
           | equally one sided picture.
           | 
           | While all of what you say is true and problematic, there are
           | people from all over the world living in Dresden and some
           | parts (especially Neustadt) are politically rather left
           | leaning.
        
             | fakedang wrote:
             | Neustadt is marketed as some left leaning paradise to
             | outside investors of Saxony's liberalism. But as Indian guy
             | in Germany around 2 years back, that was exactly my
             | experience in Saxony. I have lived across all of Germany
             | over the past few years, and nowhere did I face any
             | hostility compared to Saxony and East Germany in general.
        
             | jupp0r wrote:
             | I was literally pointing out another aspect on top of what
             | GP said of that region and ended with saying that the city
             | is "super nice". I love visiting and still have many
             | friends there.
        
             | hutzlibu wrote:
             | "there are people from all over the world living in Dresden
             | and some parts (especially Neustadt) are politically rather
             | left leaning."
             | 
             | Nu, nu. But do you talk with them about their experiences?
             | 
             | And sure, you will be fine with a dark skin in the Neustadt
             | and Hechtviertel and co.
             | 
             | But move out of that bubble and you have to be prepared to
             | face a different culture.
        
             | xgl5k wrote:
             | Left leaning and racist aren't mutually exclusive.
        
               | mattnewton wrote:
               | For real, plenty of authoritarian leftists in the world
               | who think the only path to socialism is through an
               | autocracy with a heavy sprinkle of ethnic nationalism.
               | But I think the commenter meant the more lib-left in
               | europe, the kind who would be friends with anarchists.
        
               | gramadat wrote:
               | While your statement, put that generally, is certainly
               | true, i wonder if you're familiar with leftism in Germany
               | or in Europe in general (honest question). Antiracism and
               | Antifascism are almost part of the core DNA of many of
               | these circles or at least their self-perception. Doesn't
               | mean that they necessarily live up it, of course.
               | However, the term "left" means something quite different
               | in Europe than compared to the popular usage of that term
               | in the US where, i believe, a large chunk of the audience
               | here is based.
        
               | [deleted]
        
             | Herring wrote:
             | That's not how it works. There can be a lot of good people,
             | but all you need is one in-your-face racist encounter to
             | ruin your decade. It's like how even a rumor of a shark
             | will keep you firmly on the beach.
        
               | the_third_wave wrote:
               | > all you need is one in-your-face racist encounter
               | 
               | does this also go for an encounter with someone who
               | judges people based on their point of view? On their
               | politics? On their religion, or lack thereof? On their
               | handedness? On their hair colour, length, foot size,
               | athletic ability or any other similar attribute?
               | 
               |  _All you need is one in-your-face accusation of being a
               | Nazi /racist/homophobe/transphobe/ableist/bible-
               | thumper/southpaw/ginger/proudfoot (proudfeet!)/YT/... to
               | ruin your decade_? $Deity knows many of us will have been
               | called something like that, in 99.999(*)% of the cases
               | without justification yet most of us just shrug it off
               | and go on with our lives, ignoring the labeller for the
               | non-entity she tends to be. That is how it works, at
               | least in my experience.
        
               | read_if_gay_ wrote:
               | [flagged]
        
               | blueflow wrote:
               | Do an s/racist/homophobic/ and you have a justification
               | for being a jerk to muslim immigrants.
        
               | mschuster91 wrote:
               | Ethnic Germans are just as much a threat to LGBT people
               | than fanatic Muslims are, and it's not just the former
               | GDR where reactionary and fascist attitudes bloom.
               | 
               | I had to spend half a year in the ass cracks of
               | Niederbayern... not something I'd like to repeat. People
               | openly talking "something like that (i.e. LGBT) wouldn't
               | have been a thing under Hitler" over their beers or
               | someone shouting Sieg and the full pub responding Heil
               | ("Sieg Heil" was the verbal Nazi salute) is common there.
               | 
               | And then, these very same people have the audacity to
               | complain that "the gays" lure their children away to the
               | cities... no you moron, you shouting Nazi salutes in a
               | pub does.
        
               | read_if_gay_ wrote:
               | sure, bavaria is as bad as egypt or saudi arabia for gay
               | people, suuure
               | 
               | god this place has gone down the shitter
        
               | mschuster91 wrote:
               | The person I replied to was talking about Muslim
               | immigrants to Germany, which our far-right blames for
               | being anti-LGBT.
        
               | blueflow wrote:
               | No, i was giving a hint that parent was fearmongering,
               | which i consider to be some bad thing. So i paralleled it
               | with the fearmongering of the AfD because i think
               | everyone agrees that this is bad.
               | 
               | And you backed them up with even more fearmongering. Why
               | is a self-proclaimed antifascist using fascist methods?
               | "Its justified when *I* do it" my ass. The AfD is problem
               | enough, don't add to it. Bring your points across without
               | fearmongering against groups of people.
        
               | mschuster91 wrote:
               | > And you backed them up with even more fearmongering.
               | 
               | What fearmongering?! FFS. Just look at the election
               | results of the 2021 elections, it's not by chance that
               | the AfD is stronger in the rural areas - they were 2nd in
               | Straubing, which is the area where I lived.
               | 
               | [1] https://www.bundestagswahl2021.bayern.de/ergebnis_reg
               | ierungs...
        
               | blueflow wrote:
               | This is my problem with you, your focus is entirely on
               | the baddies, and not whether your behavior makes you one
               | of them. Be better.
        
               | blueflow wrote:
               | I know better that this is not true since i experience
               | first-hand that wehrabooism and homosexuality (including
               | mine) are living by each other with no issues. What you
               | are doing is scaremongering against some group.
        
               | m_a_g wrote:
               | How does this comment fly on HN? This person is basically
               | calling all Muslim immigrants homophobes, which is so far
               | from the truth.
        
               | blueflow wrote:
               | I was paralleling parents argument with an populist
               | trope, to make it easier to understand that its not a
               | good thing to say.
               | 
               | Be careful not to read more into my sayings than what i
               | wrote. Its not an agreement, its an accusation.
        
               | nxobject wrote:
               | I'm a little confused -- how do we get from "it takes one
               | homophobic reaction to deeply affect someone", to "if
               | someone is deeply affected by one homophobic reaction
               | from a population, we should be a jerk to the entire
               | population?"
        
               | read_if_gay_ wrote:
               | that is exactly the point being made about saxony...
        
         | _Microft wrote:
         | Wow, I didn't know that that many people were working in this
         | industry there:
         | 
         |  _" Silicon Saxony is a registered industry association of
         | nearly 300 companies in the microelectronics and related
         | sectors in Saxony, Germany, with around 40,000 employees. Many,
         | but not all, of those firms are situated in the north of
         | Dresden. [...]
         | 
         | [T]he area and the union -- in many aspects -- represent the
         | only meaningful European center of microelectronics."_, excerpt
         | from https://en.m.wikipedia.org/wiki/Silicon_Saxony
        
         | mawadev wrote:
         | I guess we are the redundancy to taiwan soon...
        
           | Gasp0de wrote:
           | Not really. The factory will not produce CPUs GPUs or other
           | high end chips.
        
           | throwaway1777 wrote:
           | One of the redundancies, and not a very high end one
        
             | demondemidi wrote:
             | Not high end, but literally 1,000% the volume of high end.
             | It will be automotive / embedded, you know, the chips that
             | are in everything that's not a laptop or gaming rig.
        
               | hef19898 wrote:
               | And just looking at it from a strategic point of view,
               | those are the chips you want. Your industry runs on them,
               | the vast majority of your industrie's products runs on
               | it. Even more important: your military runs on those
               | chips.
        
         | seeekr wrote:
         | minor nitpick: "e.V." in Germany is "eingetragener Verein",
         | "registered association" and is a form of association that's
         | extremely common and use for all kinds of things, e.g. local
         | sports groups, interest groups, etc, so "e.V." in and of itself
         | doesn't have anything to do with industry, though as in the
         | above case it can be used that way!
        
           | _Microft wrote:
           | The Max-Planck-Society [0][1] is also an e.V. and they have a
           | yearly budget in the order of 2.5BEUR or so. _e.V._ s can be
           | very diverse in their nature.
           | 
           | [0] (de) https://de.wikipedia.org/wiki/Max-Planck-
           | Gesellschaft
           | 
           | [1] (en) https://en.wikipedia.org/wiki/Max_Planck_Society
        
       | baybal2 wrote:
       | That's an interesting development. I can't fathom how TSMC
       | would've let Infineon+NXP into the deal without some level of
       | positive, or negative coercion.
       | 
       | For Germany, it's an insurance against TSMC possibly bailing out
       | in the future.
       | 
       | The 22nm node is also a very strange choice. It's absolutely not
       | a thing which most of German industry needs, which are
       | microcontroller, high voltage, mixed signal, niche memory, and
       | ASIC friendly nodes.
        
         | Vespasian wrote:
         | They are getting 5bn to build this fab. That gives the
         | government some leverage.
        
         | kzrdude wrote:
         | Which are these ASIC friendly nodes?
        
           | crote wrote:
           | 40nm-ish. IO logic doesn't really scale, so going much beyond
           | that doesn't really make sense when the price per mm2 keeps
           | increasing with every node. If your logic is simple enough
           | that it doesn't really benefit from the increased transistor
           | count or power savings, IO is going to be the main factor
           | when it comes to node selection.
        
         | crote wrote:
         | > I can't fathom how TSMC would've let Infineon+NXP into the
         | deal without some level of positive, or negative coercion.
         | 
         | Easy: Infineon is German, NXP is Dutch, Bosch is German.
         | Germany is not exactly going to give a massive subsidy to a
         | foreign company, but giving one to local companies is
         | "bolstering local economy". And TSMC gets a fab at a 50%
         | discount out of it.
        
       | sirius87 wrote:
       | Wonder if the Taiwanese govt at some point will step in and block
       | these onshoring measures as a matter of national security.
       | 
       | If countries are less reliant on manufacturing within Taiwan, its
       | one less reason to stand up to Beijing's one China principle.
        
         | christkv wrote:
         | A much better strategy is to work slow :). Drag out every
         | phase.
        
           | christkv wrote:
           | Also ASML has a super long backlog I think so even if they
           | build it they would have years to wait to even get and
           | install the equipment
        
         | mrweasel wrote:
         | These fabs are going to be built, with or without TSMC. I do
         | have a bit more confidence in the long term success of US fabs,
         | compared to the EU one, but there's a good chance that both
         | will succeed, to some extend.
         | 
         | The Taiwanese government can attempt to prevent TSMC in
         | participating, but what good will that do? Might as well ensure
         | that TSMC at least have a hand in it and avoid customers
         | leaving for another manufacturer. TSMC can then offer
         | fabrication, maybe it's in the EU, maybe it's in Taiwan, the
         | important part is keeping the customer and not allowing
         | competitors to establish themselves.
        
         | DrBazza wrote:
         | TSMC buy the fab equipment ASML based in the Netherlands.
        
           | throw0101b wrote:
           | NL could block it on national security grounds.
        
             | mytailorisrich wrote:
             | Depends on what the US tell NL to do, as we've seen before.
        
               | KingOfCoders wrote:
               | These days are over - they ended with the war in Iraq. In
               | the 80s the US said "Jump!" and western Europe asked "How
               | high?".
        
               | throw0101b wrote:
               | ASML has suppliers in the US, so if the US does not like
               | what ASML/NL are doing they could block exports of
               | certain components to certain destinations.
               | 
               | Also remember that a lot (all?) of the circuit design
               | software is US-based, so the supply chain could be
               | squeezed from that direction as well.
        
               | christkv wrote:
               | Europe is still doing it, and when they don't the us
               | applies pressure through its closest European Allies. The
               | us is very much still involved in classic Cold War stuff
               | in Europe. The Ukrainian war has been very good to
               | American exports of arms and liquid gas.
        
               | AlchemistCamp wrote:
               | > The Ukrainian war has been very good to American
               | exports of arms
               | 
               | By "exports", do you mean donations?
               | https://www.bbc.com/news/world-us-canada-64656301
        
               | mytailorisrich wrote:
               | There's been plenty of sales as well.
               | 
               | For example, last year the US sold $6 billion-worth of
               | Abrahams tanks to Poland. Overall, paid-for exports to
               | Europe have exploded.
        
               | the-dude wrote:
               | It is still exported, right? Calling it a donation does
               | not suddenly make the arms free/gratis. The money still
               | comes from somewhere and is ... exported.
        
               | FirmwareBurner wrote:
               | You're wrong, your parent is correct. NL government had
               | to block sales of ASML EUV machines to China on the US's
               | request since they didn't want to enable China build
               | advanced chips.
               | 
               | ASML definitely wanted to sell to China to increase their
               | quarterly revenues but couldn't because the US owns the
               | IP for the EUV tech and ASML's EUV light sources are made
               | by CYMER in the US, which ASML bought but they're still
               | under US trade restrictions.
               | 
               | So no, ASML and the NL government have to dance according
               | to the moves dictated by the US gov as they own the keys
               | to EUV tech, not ASML/NL.
        
               | Slartie wrote:
               | In the grand scheme you are correct - there is enough US
               | corporations' tech in ASML machines so that the US
               | government has enough leverage to force ASML to comply
               | with its export restrictions.
               | 
               | But your details aren't exactly right, I think. Cymer
               | builds light sources for DUV, not EUV. The EUV light
               | sources are built by Trumpf in Germany, at least as far
               | as I know.
        
               | foobiekr wrote:
               | You might want to read the situation and history in
               | ASML's own words:
               | 
               | https://www.asml.com/en/news/stories/2022/making-euv-lab-
               | to-...
        
               | FirmwareBurner wrote:
               | You're incorect. Trumpf doesn't make EUV light sources,
               | just lasers. Cymer builds the EUV light sources, by
               | blasting microparticles of tin with said Trumpf lasers to
               | generate EUV light.
               | 
               |  _> at least as far as I know._
               | 
               | You could have also googled this to factcheck before
               | posting if you were unsure ;)
        
               | mathiasgredal wrote:
               | Since ASML builds/integrates the machine, is there any
               | reason why they couldn't just pull out the EUV laser from
               | the machine, but keep the trumpf lasers, zeiss mirrors
               | and everything else. Then China could just copy the
               | "shooting tin droplets with a laser at 50khz" part.
        
               | FirmwareBurner wrote:
               | Because then the Us would get Germany to ban Zeiss and
               | Trumpf and even if they wouldn't, the whole "shoot lasers
               | at tin droplets" bit is insanely difficult to replicate
               | that Canon and Nikon dropped out of the EUV race.
        
               | mathiasgredal wrote:
               | They already have a light source[1] which they are
               | collaborating with Imec to get ready for EUV, apparently
               | within 2 years[2]. It will be interresting to see how far
               | ASML will go to get around export restriction contracts,
               | since there are billions to be made in chinese
               | lithography. I didn't know that the US had the capability
               | the control who europeans companies choose to export
               | their products to.
               | 
               | [1]: http://www.transientek.com/cpzx/jcxnmgtjgq/jzwckgy/3
               | 5.html
               | 
               | [2]:https://thechinaproject.com/2023/08/03/beijing-
               | pushes-china-...
        
               | michaelt wrote:
               | Well, to an extent.
               | 
               | But as we saw with the Evo Morales grounding incident htt
               | ps://en.wikipedia.org/wiki/Evo_Morales_grounding_incident
               | there's still a certain amount of jumping.
        
         | UncleOxidant wrote:
         | Having so much reliance on advanced semiconductors from an
         | island that's potentially going to be invaded by China doesn't
         | seem like a great plan for the US and Europe. It absolutely
         | makes sense for both the US and Europe to incentivize
         | production in their own countries to diversify. If the fabs in
         | Taiwan were to be damaged without building up this domestic
         | capability we'd have a tough time defending Taiwan after a
         | while anyway.
        
           | sergiotapia wrote:
           | It's game theory no?
           | 
           | Having this beefy reliance on a small island that gives china
           | the middle finger
           | 
           | -OR-
           | 
           | derisk the reliance on taiwan
        
             | tetha wrote:
             | I don't think it's that simple, because the effort
             | necessary to employ the different choices are very
             | different.
             | 
             | Stopping cargo going out of Taiwan is rather cheap.
             | Unguided rockets and aircraft from your homeland can do a
             | lot. And then they just have to defend near their home land
             | while waiting for their opponent to run out of resources.
             | 
             | At the same time, as we can see here, it takes 4 years to
             | go from acre to functional fab plant after planning and
             | negotiations. And any kind of war to regain control of the
             | chip supply lane is a significant drain on the chips and
             | systems reliant on the chips you have.
        
         | 01100011 wrote:
         | I'm wondering if these offshore fab announcements from TSMC are
         | more like unserious offers intended to delay other countries
         | from pushing harder to establish local semiconductor
         | industries. TSMC is already delaying the Arizona plant in the
         | US. Maybe that was their intent from the beginning?
         | 
         | "But they've spent X billions of dollars." Yes but this is
         | irrelevant when facing off an existential threat to their
         | business and the overall economy and security of Taiwan.
         | Taiwan, like Israel, is run by cunning folks. They wouldn't
         | have survived this long otherwise.
        
         | toss1 wrote:
         | It is not just Taiwan's advanced manufacturing that is critical
         | to the free world -- an enormous amount of shipping for Japan
         | also goes through the Straits Of Taiwan. This is just part of
         | the reason that the US Navy frequently runs freedom of
         | navigation exercises through those waters.
         | 
         | Mere reduction of the criticality of Taiwan's advanced
         | manufacturing will not eliminate Taiwan's geostrategic
         | importance.
         | 
         | Plus, the CCP's insistence on being an expansionist
         | authoritarian state is reason enough to contain that expansion,
         | to prevent further resource gains.
        
           | mordae wrote:
           | So far they don't feel that expansionist. More likely they
           | just don't want US to be able to cut them off from the rest
           | of the world by naval blockade.
        
             | toss1 wrote:
             | "don't feel that expansionist"?!?
             | 
             | Sure, if you ignore their military actions and treaty
             | violations in Tibet, Turkistan (Uyghurs), border conflicts
             | around the Himalyas and India, Russia (border conflict),
             | Korea, Vietnam, everywhere on the "9-dash line", Canada and
             | the US (where they are putting up remote "police stations"
             | to intimidate anyone expressing opinions they dislike)...
             | 
             | CCP has a highly consistent history of being as aggressive
             | and untrustworthy as they can get away with. Anyone
             | trusting them is a fool.
        
         | thiago_fm wrote:
         | More like the opposite, by making ties with other countries,
         | Taiwan will win some geopolitical points.
         | 
         | TSMC alone has no control over if the Chinese government will
         | commit such aggression, if they would do their whole company
         | strategy based on fearing the CCP, there's no way they can be
         | successful.
        
           | Vespasian wrote:
           | I think this is true. China is working really hard to get
           | it's domestic semiconducter industry up to speed.
           | 
           | They are willing to burn a lot of money and time to reach
           | their overall political goal of annexing Taiwan even if it
           | takes a very very long time.
           | 
           | Ultimately it's unrealistic to assume that a country of 1.4
           | Billion people can not catch up eventually espescially if
           | they would otherwise have to rely on a global competitor (US)
           | or a military target which factories are rigged to blow
           | (Taiwan).
           | 
           | The best thing Taiwan can do (once their semiconductor lead
           | is no more) is to make themselves into a strategic ally
           | located on Chinas doorstep.
        
             | JumpCrisscross wrote:
             | > _it 's unrealistic to assume that a country of 1.4
             | Billion people can not catch up eventually_
             | 
             | Why? By 2100, each of Pakistan, the D.R.C. and Kenya are
             | forecast to have larger populations than America [1]. Is it
             | unrealistic to assume they won't be at parity with the west
             | in eighty years? (Note: not saying dismiss entirely. Just
             | baselines.)
             | 
             | China has a lot going for it in semiconductors. Demography
             | isn't one of them. The population is aging and shrinking.
             | That, _ceteris paribus_ , reduces surplus capital for R&D.
             | 
             | [1] https://en.wikipedia.org/wiki/Projections_of_population
             | _grow...
        
               | dirtyid wrote:
               | >Why?
               | 
               | Because PRC is not systemically comparable to those
               | countries just like Japan isn't comparable to a larger
               | Nigeria.
               | 
               | Only the most cognitively challenged demographic
               | determinists argue larger population = more capability.
               | Useful demographic analysis more than naive reading of
               | demographic pyramid, it's recognizing unlike most
               | developing countries, PRC has established record to
               | upskill/cultivate and coordinate human capita at scale.
               | And is projected to have multiple times more skilled
               | talent than US by 2050s, moving from current 25% high
               | skilled workforce to 60/70/80% to reflect workforce
               | composition of advanced economies over time.
               | 
               | >Demography isn't one of them
               | 
               | More than anyone, demography is PRC's greatest advantage
               | for semi and other high tech industries in relevant
               | timelines we're talking about. The workforce for high
               | skilled talent is exploding for another 30+ years.
               | Short/medium term PRC has by relevant measures, the
               | greatest skilled demographic divident ever, and even in
               | stagnation they'll be settling with largest (or second
               | largest relative to India) pool of skilled workforce,
               | with again proven ability to coordinate (i.e. not India
               | performance).
               | 
               | Even 2100 PRC working age population is still ~2x of 2100
               | US if you tally up pyramid projections of 20-65 yr olds.
               | Except PRC's 2100 workforce will likely have more than 2x
               | current skilled talent instead of being dragged down by
               | 100s of millions of farmers and surplus informal workers
               | who will age out post 2050s to be replaced by better
               | educated/more productive cohorts. Same way other Asian
               | tigers grew despite "bad demographics" - by continuously
               | upskilling % of workforce initially dominated by peasants
               | over time.
               | 
               | This is why current analysis of US semi workforce project
               | 80k short term shortage to balloon to 300-400k medium
               | term. SKR, TW both have current/short term 50-100k
               | shortage. The TLDR is SKR, TW (and JP) have nearly
               | satuated their workforce in terms of skilled talent, and
               | can't replace at parity. US expanding fabs as rate their
               | talent pipeline can't catch up, and the ability to
               | import/brain drain is limited because they'll be taking
               | from other CHIP4 partners also undergoing shortage. Which
               | leaves PRC, who after elevating semi to first-level
               | dicipline in 2018 is pumping out about 30k IC graduates
               | per year. They're still about 200k short, ~520k/720k
               | (400k in 2018) out of what IC talent 2018 white paper
               | estimated PRC needed for completely indigenous semi
               | industry, which US isn't currently even trying to pursue,
               | still ultimately relying on east asian semi supply
               | chains. Long term US may to get there, but right now only
               | PRC is sent to close semi labour force gap within the
               | decade. Ultimately, talent is just as important in
               | industrial policy as money. PRC has both. Their biggest
               | shortcoming is being behind, which will likely be
               | addressed by investing sufficient talent and money.
        
               | mschuster91 wrote:
               | > By 2100, each of Pakistan, the D.R.C. and Kenya are
               | forecast to have larger populations than America. Is it
               | unrealistic to assume they won't be at parity with the
               | west in eighty years?
               | 
               | Pakistan has the best chances to rise, at least assuming
               | religious / ethnic tensions can be somewhat placated, it
               | doesn't become a hotbed of natural disasters like last
               | year's floods and they don't either get into open war
               | with India or suffer from some sort of coups by the
               | military or secret services.
               | 
               | Kenya and especially Congo? That's a different game
               | entirely. Climate change, utter poverty and endemic
               | corruption are just a couple of the hurdles to pass.
        
               | guiriduro wrote:
               | Climate change is already having the bigger impact on
               | Pakistan - aside from 48C Karachi, last year saw
               | incredible flooding.
        
             | The_Colonel wrote:
             | Even endless money is no guarantee of a success, especially
             | with a rampant corruption and preference for loyalty as
             | opposed to competency.
        
             | MengerSponge wrote:
             | China is willing to point a firehose of resouroces at
             | development targets, but that doesn't guarantee success.
             | Semiconductors are really stinking hard!
             | 
             | East Germany famously tried _really hard_ to develop a
             | native capability, but failed and wound up smuggling parts
             | from the west and running years behind western firms:
             | https://www.youtube.com/watch?v=cxrkC-pMH_s
             | 
             | China is more willing to both reward and hold senior
             | stakeholders responsible, as long as they aren't too
             | closely allied with Xi
        
         | crote wrote:
         | Not for this fab. The technology is quite old, so it doesn't
         | directly change anything about our reliance on Taiwan's
         | cutting-edge fabs.
        
         | YetAnotherNick wrote:
         | We are talking about potential WW3, and you are worried about
         | world loosing 2 years of progress due to war. Currently,
         | Samsung is 2-3 years behind and Intel is 3-4 years behind and
         | the gap is shrinking as we approach EUV limit.
         | 
         | Millions of lives would be lost if not more if it will be a
         | full scale war. A chip fab is nowhere the same level of
         | importance to be even discussed on the table.
        
         | madsbuch wrote:
         | My impression is that TSMC is a Taiwanese company, why this
         | would not be onshoring, but _offshoring_.
         | 
         | The more appropriate term is probably _foreign direct
         | investment_ (FDI) in Germany from TSMC.
         | 
         | I find it funny that western people have issue with the idea
         | that Asian companies can indeed also invest in western
         | countries. It is akin to some discussion about Lega here on HN
         | where some people talked about it as "onshoring" when they made
         | a US factory - Lego is a Danish comapny.
        
         | mensetmanusman wrote:
         | Onshoring is impossible for most countries. TSMC had an annual
         | capital budget of >$50B, there are only like 30 countries with
         | >$100B in total government revenue:
         | 
         | https://en.m.wikipedia.org/wiki/List_of_countries_by_governm...
        
           | manojlds wrote:
           | How many of those countries are going to protect Taiwan?
        
           | bluecalm wrote:
           | But only like 5 countries matter for Taiwan national security
           | and those have the budget.
        
         | JumpCrisscross wrote:
         | You don't see how that would immediately produce blowback? Is
         | Congress going to say "oh shucks" and authorise another weapons
         | deal? Or might they redirect those dollars domestically while
         | reducing patrols of the Taiwan Straits?
        
           | sealeck wrote:
           | It's extremely unlikely for the US to do that as if China
           | takes Taiwan it will be a huge blow to the US and to the
           | value of being a US ally.
        
         | andrewstuart wrote:
         | They probably figure it's better to be the one doing it than
         | someone else.
        
         | coliveira wrote:
         | The USA has guaranteed the demise of Taiwan by making it the
         | next target of a global war. Everyone knows that China is not
         | going back on a territory that is theirs by international
         | treaties, and the US has practically declared they will fight
         | to separate Taiwan from China. The only thing that remains for
         | Taiwanese companies is to move from homeland into other
         | countries as a way to survive. Actually, this is probably what
         | the US gov wanted in the first place, so they destroyed another
         | competitor.
        
           | brobinson wrote:
           | "that is theirs by international treaties"
           | 
           | The PRC has never, not even for a single day, controlled
           | Taiwan, Kinmen, Matsu, etc.
           | 
           | The continued existence of the ROC (1912-present) truly
           | causes tankies to lose their minds.
        
           | t43562 wrote:
           | To make Taiwan less critical makes it less attractive as a
           | target - China won't be able to damage the US so much by
           | taking Taiwan. It will be harder for China to force other
           | people to accept their action.
        
             | coliveira wrote:
             | This doesn't make Taiwan less critical for China. They will
             | continue to defend Taiwan as part of China for the
             | foreseeable future.
        
               | t43562 wrote:
               | Not less critical but you see if they steal something the
               | rest of the world needs then they can hold the world to
               | ransom but if the rest of the world has alternatives then
               | they can't. That has to change their calculations about
               | when and how they will make a move.
        
           | MangoCoffee wrote:
           | >Everyone knows that China is not going back on a territory
           | that is theirs by international treaties
           | 
           | When you said China, which China are we talking about?. the
           | fact is, Taiwan and China is still in a Civil War.
           | The United States did not explicitly state the sovereign
           | status of Taiwan in the three US-PRC Joint Communiques of
           | 1972, 1979, and 1982.              The United States
           | "acknowledged" the "One China" position of both sides of the
           | Taiwan Strait.              U.S. policy has not recognized
           | the PRC's sovereignty over Taiwan;              U.S. policy
           | has not recognized Taiwan as a sovereign country; and
           | U.S. policy has considered Taiwan's status as unsettled.
           | 
           | https://en.wikipedia.org/wiki/One_China#United_States_policy
        
         | junon wrote:
         | Couldn't TSMC cease or hinder operations if their HQs is
         | threatened and their partnering countries do nothing? Seems
         | like more leverage and ally building than the opposite to me.
        
         | rjzzleep wrote:
         | People who don't understand what OP just wrote should look at
         | what just happened to the South Korean semiconductor market.
         | over 36% plunge in exports[] and that samsungs memory profit
         | dropped 95%[].
         | 
         | Yes, they depend on ASML, but ASML itself was dependent on IP
         | from TSMC engineers. TSMC already announced that they will stop
         | applying for subsidies from the Chip Act[] in the US recently
         | because the US keeps changing what confidential data needs to
         | be shared with the US.
         | 
         | They seem to be at least slowly understanding that this is a
         | dangerous game.
         | 
         | And for the people that keep talking about ASML you might well
         | want to remember that not long ago the leadership was mocking
         | China's capability to build their own domenstic supply chain
         | only to flipflop shortly after saying that it would be foolish
         | to abandon the Chinese market likely indicating that they might
         | be concerned that their domestic supply chain might end show up
         | faster than expected.
         | 
         | Taiwanese media last year was plastered with news about how the
         | US hollowed out the Japanese semiconductor industry with its
         | agreement in 1986 and how that will be potentially the fate of
         | Taiwan.
         | 
         | But the sibling comments are correct about the potential
         | blowback, let's not forget that the US has been talking about
         | bombing TSMC themselves[]. I guess that probably explains why
         | they just announced a delay to the construction of the Arizona
         | fab.
         | 
         | [] https://www.koreatechtoday.com/south-koreas-semiconductor-
         | ex...
         | 
         | [] https://www.aljazeera.com/economy/2023/7/27/samsungs-
         | profit-...
         | 
         | [] https://www.theregister.com/2023/04/11/tsmc_chips_act/
         | 
         | [] https://www.taiwannews.com.tw/en/news/4886681
        
           | oblio wrote:
           | > People who don't understand what OP just wrote should look
           | at what just happened to the South Korean semiconductor
           | market. over 36% plunge in exports[] and that samsungs memory
           | profit dropped 95%.
           | 
           | Is demand for electronics finally dropping? I want to be able
           | to buy a 3 year old Nvidia low-range GPU at below MSRP...
        
             | sangnoir wrote:
             | > Is demand for electronics finally dropping?
             | 
             | Unfortunately, it is likely to be limited to flash storage.
             | The $/GB value has fallen to historic lows for all manner
             | of solid-state storage devices.
        
             | nottorp wrote:
             | I've been forwarded this piece of apparently bad news
             | recently:
             | 
             | https://www.extremetech.com/gaming/report-nvidia-has-
             | practic...
             | 
             | So I wouldn't hold my breath.
        
               | BlueTemplar wrote:
               | Why would people not just buy AMD GPUs instead ? It's not
               | like they are much worse, in fact last I checked it was
               | Nvidia GPUs that were problematic if you had Linux in
               | mind !
        
               | stefanfisk wrote:
               | One reason is CUDA.
        
               | mordae wrote:
               | I have "ancien"t Vega 64 and I enjoy a lot of recent
               | games with Lutris and Steam.
        
           | JumpCrisscross wrote:
           | > _the US has been talking about bombing TSMC themselves[]_
           | 
           | The U.S. said nothing of the sort. One Congressman, in the
           | minority no less, did.
        
             | coliveira wrote:
             | You can say this about any US policy, until it is
             | officially announced. It turns out that the US gov has made
             | all the moves to weaponize Taiwan and make it the center of
             | a war against China, so what is the surprise that they will
             | bomb Taiwan if needed?
        
               | BlueTemplar wrote:
               | Isn't Taiwan planning to bomb itself if China invades ?
        
               | martin8412 wrote:
               | Because of the geography of Taiwan, the idea is to turn
               | Taiwan into a porcupine. Make it prohibitively expensive
               | and deadly to try and invade. Taiwan armed to the teeth
               | with modern American weaponry will go a long way to
               | accomplish that.
        
             | colechristensen wrote:
             | Of course there is a plan somewhere for this kind of thing,
             | that's how war works.
             | 
             | But an idiot fringe congressman spouting such things does
             | not make a credible threat or say anything about the actual
             | intentions about the country, just a good way for somebody
             | to get attention or some points from one hardline group or
             | another.
        
               | pokepim wrote:
               | [dead]
        
           | photochemsyn wrote:
           | The stated reason for delaying the fab construction is a lack
           | of skilled labor in the USA, which does make sense - that's
           | what happens when you hollow out domestic manufacturing in
           | the name of increased corporate profits from outsourcing.
           | 
           | > ""There is an insufficient amount of skilled workers" with
           | the expertise to build a chip factory, TSMC chairman Mark Liu
           | complained during a call with analysts. The executive warned
           | the company might have to fly in "experienced technicians
           | from Taiwan to train the local skilled workers for a short
           | period of time.""
           | 
           | https://fortune.com/2023/07/21/tsmc-complains-cant-find-
           | enou...
        
             | coredog64 wrote:
             | Insufficient at the price TSMC is willing to pay for all
             | those hours.
             | 
             | The neighborhood around ASU in Tempe, AZ is chock full of
             | fabs that have been built or expanded recently. Please take
             | the "hollowed out workforce" to a different discussion
             | where it actually applies.
        
               | pokepim wrote:
               | [dead]
        
           | sparrowInHand wrote:
           | If there was a spark of integrity left, a whole generation
           | would step back from there posts in lock and file out of the
           | building. Not a grey hair to be found after the whole Neo-
           | Lib-Con episode.
        
           | berkes wrote:
           | > the leadership was mocking China's capability to build
           | their own domenstic supply chain
           | 
           | Well, ASML is primarily and rightly very concerned that once
           | "China" has their machines they'll attempt to reverse
           | engineer them, ignore any western patents and IP and try to
           | build 'Chinese chip machines'. It's happened to many
           | industries, from Lego to fashion to hi tech. Hell, apparently
           | there's even Chinese Knock-off Movies.
           | 
           | So, above everything else, there's a legitimate concern for
           | ASML that once they move or deliver too much into China,
           | they'll enable their own competition.
        
             | dahwolf wrote:
             | ASML's EUV machines cannot be reverse engineered.
             | 
             | There's over a 100K parts, several of them from exclusive
             | suppliers. You'd have to recreate several industries from
             | scratch or somehow bribe all suppliers. You will absolutely
             | fail to recreate the parts at all but even then if you
             | hypothetically would, you can't put the machine together as
             | if it's just a few bolts. It requires a team in the know
             | months to do it, but you're not in the know. The tolerance
             | for error is near-zero. Installing, configuring, running
             | the machine, both hardware and software is extraordinarily
             | complex.
             | 
             | None of this is a secret. The Chinese government announced
             | a multi-billion dollar program to try and recreate such a
             | machine from scratch. Expected timeline is 20 years with a
             | highly uncertain outcome.
             | 
             | ASML does not have a concern to export to China, they want
             | to export to China but are pressured to not do so by the US
             | government.
        
           | gsatic wrote:
           | All this while demand is not growing like it once was. Lot of
           | these projects will bomb. And the west doesnt have docile
           | easy to dominate labour that east asia has. They will never
           | achieve the same margins. And as soon as China-Taiwan chapter
           | is over, corporate robots will happily return.
        
             | littlestymaar wrote:
             | > And as soon as China-Taiwan chapter is over
             | 
             | That's a very strong prerequisite though... It may not be
             | over for several decades to come.
        
               | gsatic wrote:
               | After what happened to hong kong, its hard to believe
               | that.
        
               | littlestymaar wrote:
               | No offense but there's no possible comparison between the
               | two, and comparing the situations only highlight your
               | lack of understanding of the situations:
               | 
               | - Hong Kong belonged to China already, it just had a
               | special status that was supposed to expire at some point,
               | Xi "just" went ahead of schedule but there wasn't
               | anything to stop him from doing so (no independent HK
               | government, no army, etc)
               | 
               | - Taiwan is a complete state, with a government and an
               | army, a navy and an air force equipped with Western and
               | mordern home-grown equipment, cruise missiles and anti-
               | ship missiles and so on. Without a Western direct armed
               | intervention, Taiwan is almost always expected to fall
               | after a few weeks by Western military analysts (though
               | the same analysts also expected Ukraine to be unable to
               | match Russia on conventional battles), but even the
               | current predictions on Taiwan suggests that China will
               | pay a signifiy cost in terms of casualties and and
               | material even if they succeeded eventually. And again the
               | success assumes no military actions from the West. Of
               | course Xi may take his chance anyway, but the situation
               | would still be incomparable to HK.
        
               | baybal2 wrote:
               | [dead]
        
           | strbean wrote:
           | Wasn't there a whole DRAM price fixing cartel that blew up
           | recently?
        
         | nabla9 wrote:
         | TSMC is not building GIGAFAB outside Taiwan.
         | 
         | This in Germany and the one in the US are both Megafabs.They
         | produce chips for special industries with strategic importance.
         | In the US for military and defense, in the Europe for
         | automotive industry and automation.
        
         | rsynnott wrote:
         | TSMC is a big buyer of fab equipment from European and US
         | companies; that could quickly become a _very_ ugly trade war.
        
       | KingOfCoders wrote:
       | Silicon valley started by billions and billions of state money
       | pumped into companies before, during and after WW2 (e.G IBM
       | opened in San Jose in '43).
        
         | js8 wrote:
         | Exactly. All the big economic success was due to state
         | coordination and intervention, not (neo-)liberalism. Liberalism
         | might work for a smaller country that becomes a trading hub
         | (like Singapore), and uses low taxes as a sort of parasitic
         | strategy; that's why it cannot be replicated by large
         | countries.
         | 
         | I am glad that Germany is coming to their senses and finally
         | rejecting neoliberalism. Now if only Eurozone leadership (which
         | was created during neoliberal heydays) would do the same across
         | the EU.
        
           | dontlaugh wrote:
           | Singapore's economy is also significantly planned, despite
           | the opposite being the common knowledge.
           | 
           | Same with South Korea.
        
             | KingOfCoders wrote:
             | Also Singapore has 17% corporate tax, compared with 12.5%
             | in Ireland.
        
             | dtf wrote:
             | I was kind of shocked to find this out too. For instance:
             | 
             | "As of 2020, 78.7% of Singapore residents live in public
             | housing, down from a high of 88.0% in 2000."
             | 
             | https://en.wikipedia.org/wiki/Public_housing_in_Singapore
        
             | js8 wrote:
             | Yeah, that only strengthens my argument that neoliberalism
             | has failed.
        
           | croes wrote:
           | It's a perfect example of neoliberalism.
           | 
           | The automotive industry made the mistake of cancelling their
           | orders during Corona and were then surprised to find that the
           | capacities were allocated elsewhere when they wanted to order
           | again.
           | 
           | So they whined at the government to subsidise the fab.
        
             | KingOfCoders wrote:
             | What about the AstraZeneca sending "best effort" vacc doses
             | to the UK with ~100% but "best effort" the EU got ~30% of
             | what it ordered? (sure I guess the EU will not again sign
             | contracts that contain "best effort").
        
               | croes wrote:
               | Not to mention that the AstraZeneca vaccine was developed
               | by the Oxford university and they planned to release it
               | with costs until the Gates foundation convinced them to
               | sell it.
        
           | r0b1n wrote:
           | Eurozone leadership will never do that, because of national
           | egoisms. Just look at how Airbus builds its airplanes,
           | because everybody wants a slice, so they fly each airplane
           | body halfway across the continent and back... And Airbus is
           | just 4 nations (FR, DE, ES, UK). Collaboration across all of
           | the Eurozone or all of the EU would be a mess of ITER-like
           | proportions.
        
             | KingOfCoders wrote:
             | Even with privatisation in the 90s and many on the left
             | disputing this, Germany is still considered a social market
             | economy ("Soziale Marktwirtschaft").
        
           | LudwigNagasena wrote:
           | First, what is your definition of neoliberalism?
           | 
           | Second, why do you think a country like Germany (where the
           | ratio of government expenditure to GDP is around 50%) can be
           | classified as "neoliberal" in the sense you mean it?
        
             | js8 wrote:
             | Neoliberalism: Free trade and globalization is good, state
             | ownership and state economic investment bad.
             | 
             | Germany was certainly less damaged by neoliberalism (which
             | is an ideology, actual practice might be different) than
             | the US and UK, who were the major proponents of
             | neoliberalism. I think the reason was that Germany has
             | tripartism, which makes union-industry negotiations less
             | antagonistic.
             | 
             | But, the Eurozone was built according to neoliberal
             | principles (and associated austerity policies), and the
             | results were catastrophic for the EU. That's why we (I am
             | Czech) need to snap out of it.
             | 
             | Ha-Joon Chang and George Stiglitz describe the problems of
             | neoliberalism as a strategy of economic development in
             | their books.
        
             | croes wrote:
             | Maybe because they replaced lots of social security
             | features by private company insurances.
             | 
             | Health care and pensions cover hardly all your needs and
             | need to be supplemented by private insurances.
             | 
             | They privatised or try to privatise essential services like
             | postal services, telecommunications and railroads.
             | 
             | They got rid of government experts in favor of external
             | private company "experts". In combination with construction
             | contracts being put out to tender this leads to failures
             | like the BER airport. All these private companies weren't
             | able to built and airport that complies with the building
             | regulations. So they either aren't as effective as
             | neoliberlism claims or they exploited the lack of
             | governmental oversight to get more money.
             | 
             | Not to mention the millions politicians like Ursula vin der
             | Leyen gave to companies like McKinsey to advise on the
             | modernisations of the Armed Forces which lead to the
             | opposite.
             | 
             | They are neoliberal, it's just isn't so easy to sell it to
             | the people as something positive. That's why the SPD was
             | needed to implement a wage raise killer like Hartz IV,
             | because people thought of the SPD as a social party working
             | for the workers.
        
         | oytis wrote:
         | Nothing wrong with state subsidies, EU has just not been good
         | at them historically (e.g. Galileo), and there is reasonable
         | doubt that it is going to be better this time, as what they
         | invest in is far from being a cutting edge technology.
        
           | ko27 wrote:
           | What are you talking about? Galileo is a big win for the EU,
           | even after taking into account the initial problems.
        
             | IshKebab wrote:
             | I'm just curious but what about it is a big win?
        
             | KingOfCoders wrote:
             | And will be, should the US for whatever reason decide to
             | limit access to GPS or reduce resolution in certain parts
             | of the world. Transport in the EU would break down.
        
       | sharts wrote:
       | Why does it always seem major projects like this start about 10
       | years after people realize we need major projects like this?
        
       | qlkjwenf wrote:
       | HUGE mistake for TSMC! Don't forget that german authorities hate
       | entrepreneurs and they will do whatever possible to make their
       | life as excruciating as possible. Communism ideology founders
       | (Marx, Engels etc.) were all born in Germany and this is not a
       | coincidence.
        
         | qwytw wrote:
         | Considering majority of the funding comes from the government
         | it doesen't seem like a bad deal...
        
       | thiago_fm wrote:
       | Great to see they coming to Germany. If Tesla could build a car
       | factory here from scratch, I'm sure that they can build chips
       | too.
       | 
       | Curious why they've chosen Dresden though.
       | 
       | Anybody knows how much the government is willing to invest?
       | Missing some tangible figures.
        
         | chrizel wrote:
         | > Curious why they've chosen Dresden though.
         | 
         | The region is known for its semiconductor industry, at least in
         | Germany. Quote from Wikipedia about Dresden:
         | 
         | > Silicon Saxony Saxony's semiconductor industry was built up
         | in 1969. Major enterprises today include AMD's semiconductor
         | fabrication spin-off GlobalFoundries, Infineon Technologies,
         | ZMDI and Toppan Photomasks. Their factories attract many
         | suppliers of material and cleanroom technology enterprises to
         | Dresden.
         | 
         | So it just makes sense to build fabs in Dresden because there
         | is already a lot of know-how there.
        
           | thiago_fm wrote:
           | Had no idea about it. Thank you for the valuable information!
        
           | luplex wrote:
           | I wonder how much the decision was influenced by the general
           | lack of opportunity in the east, and the rising alt-right
           | movement as a consequence. I really want eastern Germany to
           | have a better economy.
        
         | Vespasian wrote:
         | Dresden has been a semimanufactoring hub in Eastern Germany for
         | quite some time.
         | 
         | I believe this started in GDR times and continued (at massively
         | reduced capacity) after the reunification.
         | 
         | Intel, AMD, Infineon and others operate (or plan to build)
         | factories in Dresend (or saxony in general) and its reasonable
         | to assume that experienced workers and local suppliers make the
         | area a preffered location.
         | 
         | Given Eastern Germanys weak economic situtation these are very
         | welcome investments.
         | 
         | Edit: see bellow for corrections
        
           | zatarc wrote:
           | Intel will settle in Magdeburg. The "AMD" Fab in Dresden
           | belongs to GlobalFoundries (AMD sold its last GlobalFoundries
           | shares in 2012).
        
             | Vespasian wrote:
             | Thank you for correcting me :)
        
         | [deleted]
        
         | r0b1n wrote:
         | 5 Billion Euros of public money out of a total of 10 Billion
         | invested. So it is more like "the German state builds a fab,
         | with TSMC and others also investing a little".
        
           | trompetenaccoun wrote:
           | >The planned joint venture will be 70% owned by TSMC, with
           | Bosch, Infineon, and NXP each holding 10% equity stake,
           | subject to regulatory approvals and other conditions.
           | 
           | I wonder what them "providing" 5 billions as news reports put
           | it actually means. Is this a loan, a gift, or some other type
           | of deal?
        
             | rasz wrote:
             | Gift. Here is how it worked in Wales:
             | https://www.youtube.com/watch?v=hijJ_4H08RM
        
               | Lionga wrote:
               | You have to subtract 10% or so in kickbacks that will
               | later flow back to the politicians handing out the money
        
         | generic92034 wrote:
         | > Anybody knows how much the government is willing to invest?
         | Missing some tangible figures.
         | 
         | 5B, according to German news:
         | https://www.tagesschau.de/wirtschaft/tsmc-dresden-100.html
        
         | nottorp wrote:
         | > If Tesla could build a car factory here from scratch,
         | 
         | Did Tesla ever finish that German factory? Last time i read
         | about it no one wanted to work there...
        
           | thiago_fm wrote:
           | I live nearby, it is finished and it is producing Teslas.
        
         | PartiallyTyped wrote:
         | Other companies with offices there are AWS' EC2 (Kernel dev,
         | Gravitons, etc), and Xilinx.
        
         | zensayyy wrote:
         | Dresden has a really good university when it comes to computer
         | engineering, too. Plus it realtively cheap compared to other
         | regions in Germany (like Munich)
        
         | Kelteseth wrote:
         | > Curious why they've chosen Dresden though.
         | 
         | Because many foundries are located there like GlobalFoundries
         | and Bosch
        
           | pipo234 wrote:
           | Eindhoven (NL) would have been obvious as well (NXP, ASML,
           | Infineon, Philips)
        
             | AdamN wrote:
             | Germany wouldn't have subsidised that one though - this was
             | German money.
        
             | Vespasian wrote:
             | Germany is a big player (politically and financially) in
             | the EU and the Eurozone and it's benefitial to have them on
             | your side.
             | 
             | (Also such a large economy can offer better (aka larger)
             | subsidies if they want to)
        
             | TotempaaltJ wrote:
             | Eindhoven is also still growing:
             | https://siliconcanals.com/news/startups/dutch-smart-
             | photonic... Much smaller though!
             | 
             | It's probably good for the EU in general to have multiple
             | silicon hubs.
        
             | dontupvoteme wrote:
             | Eindhoven also has a recent influx of PhDs from Philips
             | looking for a new place to work...
             | 
             | although imo Eindhoven isn't exactly the most... attractive
             | place to live for many people. Dresden on the other hand
             | seems like it's somewhat en vogue
        
           | thiago_fm wrote:
           | Makes sense. Thank you!
        
         | JanSt wrote:
         | Dresden is a huge chip hub with lots of talent
        
         | dustypotato wrote:
         | Maybe because East Germany is cheaper?
        
       | dontupvoteme wrote:
       | Along with (hopefully) that french startup (Mistral) founded by
       | the LLaMA guys, the EU is putting together the pieces they need
       | to keep up with AI and maintain their ability to leverage their
       | control mechanisms upon the FAANGS.
       | 
       | Realpolitk wise they absolutely cannot risk regulatory capture to
       | a few select firms on the west coast of the USA.
       | 
       | Altman himself threatened (for a brief period) to cut off GPT to
       | the EU after Italy rightfully brought up issues with data
       | privacy. Microsoft made him walk that one back _real_ quick - he
       | probably wasn 't really aware that he is now one of their
       | employees - but it hopefully got through to Brussels about how
       | these guys want to operate.
       | 
       | We'll also probably get a lot better support for languges which
       | aren't english (especially French, I really love their stubborn
       | nature to stick with their langauge over the anglo one), an
       | entire other scary effect of LLMs is the potential to accelerate
       | language death
       | 
       | Very nice to see.
        
         | onlyrealcuzzo wrote:
         | > Altman himself threatened (for a brief period) to cut off GPT
         | to the EU after Italy rightfully brought up issues with data
         | privacy.
         | 
         | This wouldn't be a big deal. GPT is not some one-of-a-kind
         | leaps-and-bounds ahead of everyone else ground-breaking
         | technology.
        
           | hospitalJail wrote:
           | Still in denial?
           | 
           | I have a hard time understanding the people who visit this
           | website and havent used the technology.
        
             | onlyrealcuzzo wrote:
             | The people most hyped on GPT are the people who see the
             | potential for it if it continues to get exponentially
             | better - which Altman himself pretty much said it won't.
        
               | adventured wrote:
               | > GPT is not some one-of-a-kind leaps-and-bounds ahead of
               | everyone else ground-breaking technology.
               | 
               | GPT 3 and 4 were already exactly that, leaps and bounds
               | ahead of everybody else.
               | 
               | GPT 4 shocked the connected planet and massively
               | disrupted plans across the tech industry globally.
               | Version 4 has been every bit as disruptive as the iPhone
               | (which completely altered the trajectory of the phone &
               | mobile markets).
               | 
               | It has been talked about from coast to coast across the
               | globe non-stop since its release. Covered endlessly by
               | every major media outlet in the West. GPT this, AI that,
               | non-stop since V4 sparked enormous consumer attention and
               | debate.
               | 
               | It has dozens of major companies and open source groups
               | desperately attempting to copy it or catch up to it.
               | 
               | It has governments terrified of AI and attempting to
               | quickly place regulations to control it.
               | 
               | It has programmers - one of the elite, highest paying
               | professions in the world - running scared that half the
               | software development jobs in the industry are going away
               | in the next decade (they are).
               | 
               | 1.3 million software developers in the US earning a
               | median of $115,000 before benefits ($200+ billion in
               | total annual compensation for that employee pool). Half
               | of those jobs, at a minimum, will be eliminated by this
               | type of AI, and it was GPT 4 that made it clear it was
               | not just a far-off premise.
               | 
               | Its the first highly potent consumer AI product. Over one
               | hundred million people quickly signed up to use it. There
               | hasn't been anything remotely close to it so far (Siri
               | and Alexa have been barely useful jokes by comparison).
               | 
               | The same people that like to pretend Tesla didn't spark
               | the electric car revolution, and like to pretend Apple
               | didn't spark the smartphone revolution, like to pretend
               | OpenAI didn't just set off a revolution in AI.
        
               | sangnoir wrote:
               | >> GPT _is not_ some one-of-a-kind leaps-and-bounds ahead
               | of everyone else ground-breaking technology.
               | 
               | > GPT 3 and 4 _were_ already exactly that, leaps and
               | bounds ahead of everybody else.
               | 
               | I don't think you're disagreeing with gp
        
               | onlyrealcuzzo wrote:
               | > It has been talked about from coast to coast across the
               | globe non-stop since its release. Covered endlessly by
               | every major media outlet in the West. GPT this, AI that,
               | non-stop since V4 sparked enormous consumer attention and
               | debate.
               | 
               | You're in a bubble: https://trends.google.com/trends/expl
               | ore?geo=US&q=ChatGPT&hl...
               | 
               | Trends on ChatGPT interest are clearly going down.
               | 
               | It's almost as if it isn't the Magic Beans the charlatans
               | claimed.
        
               | sharts wrote:
               | [dead]
        
               | martin8412 wrote:
               | The only people scared are people who don't understand
               | it. You've obviously drank the koolaid. What OpenAI has
               | done is impressive, but it's not a replacement for
               | programmers or anyone who does knowledge work. The people
               | who should be scared are people who don't produce
               | original work. For example, journalists who just rewrite
               | content from Reuters. Investigative journalists producing
               | original work aren't at risk.
        
               | deadbunny wrote:
               | You sound like a cryptobro 5 years ago. Everything you're
               | citing is pure hype.
        
             | throwaway1777 wrote:
             | Still have a hard time understanding people who refuse to
             | look at the data and benchmarks myself. Chatgpt was a game
             | changer and let the cat out of the bag, but it's not far
             | ahead anymore.
        
         | Nux wrote:
         | I think AI is an afterthought here, if at all. Automotive is
         | the main target and to a degree IoT. They couldn't build cars
         | during the pandemic due to broken supply chains, that's when
         | their lightbulb went on afaik.
        
           | berkes wrote:
           | But isn't a lot of modern automotive all about ai? Stuff like
           | image recognition on camera's and sensors, error prediction,
           | data-aggregation and, in future, self-driving?
        
             | qwytw wrote:
             | You're not going to run that AI on chips made in fab which
             | will be already outdated by 15+ years when it's opened.
        
             | Vespasian wrote:
             | Not really.
             | 
             | Most tasks in a car do not run on high speed cutting edge
             | chips.
             | 
             | A few random examples:
             | 
             | - adjusting your side mirrors - the control of the AC
             | cooling unit and speed of the fans - electronically
             | adjustable seats - parking sensors (the beeping kind) -
             | wiper controls - engine controls (ice or BV) - inverter
             | (BV)
             | 
             | All of those require electronics most require a
             | microcontroller but not the latest 3nm Snapdragon.
        
             | martin8412 wrote:
             | Most of the stuff in a car could run on a 6502. The rest
             | will run on something akin to the NXP i.MX8. Not at all
             | cutting edge, but more than sufficient.
             | 
             | It is more than fast enough to process input from sensors
             | and it has hardware support for video.
        
               | parl_match wrote:
               | eh, modern ECUs, accident compute, etc are doing timing
               | and tuning calculations in real time such that you need
               | something a little more adequate. A 40mhz PowerPC CPU
               | with an FPU, for example.
               | 
               | Aside from mandatory ADAS, most cars can definitely get
               | away with "90s tech" but probably not "80s tech"
        
               | martin8412 wrote:
               | The 6502 in my argument was meant for something like
               | controlling seats or mirrors.
               | 
               | The ECU obviously needs more compute power. That said
               | 6502 was an over exaggeration.
        
         | croes wrote:
         | The fab is supposed to supply mainly the automotive industry,
         | who made the mistake of cancelling their orders during Corona
         | and were then surprised to find that the capacities were
         | allocated elsewhere when they wanted to order again.
         | 
         | They will still have the same problem, but they don't think
         | that far ahead.
        
           | r0b1n wrote:
           | It isn't even thinking ahead. It is pure, plain and simple
           | arrogance, of the most despicable and stupid kind. The German
           | auto producers are used to be able to strong-arm politicians
           | and their suppliers. What they say goes, because usually they
           | can threaten whole regions with unemployment and whole
           | companies (the ones that produce car-parts such as seat
           | cushions or engine parts mostly/only) with bankruptcy. Don't
           | want to accept a mandatory 20% price reduction mid-contract?
           | We'll just delay payment until you do, good luck surviving
           | long enough for the courts to recognize your claim...
           | 
           | With chip makers, it is different, because chips can be used
           | in lots of different products and there is lots of demand
           | from all corners. So car makers tried their usual strong-arm
           | tactics and failed miserably. Chips being a sellers market,
           | after all. After which car makers went whining to their
           | politician puppets, getting them to OK billions in subsidies
           | for "supply chain security".
        
             | thenaturalist wrote:
             | The nice thing about this situation and one that is not
             | appreciated by enough people in the economy is that it's
             | not a zero sum game.
             | 
             | Two things can be true at the same time!
        
             | ferongr wrote:
             | I don't know why this is downvoted but it's more or less
             | correct regarding the industry here in Europe.
        
             | croes wrote:
             | Yes, the german automotive industry is used to extort and
             | exploit their suppliers.
             | 
             | It must have been a shocking experience for them that chip
             | manufacturers have alternative buyers.
        
         | sho_hn wrote:
         | Aren't LLMs potentially great to ward off language death due to
         | their significant abilities to transpose ideas into different
         | languages?
        
           | oblio wrote:
           | > Aren't LLMs potentially great to ward off language death
           | due to their significant abilities to transpose ideas into
           | different languages?
           | 
           | What do you mean?
        
             | berkes wrote:
             | Not GP, but in my case, I find my conversations with
             | ChatGPT or Copilot often being in my native language.
             | Whereas with Google, official docs, and StackExchage it's
             | only and always English.
             | 
             | Obviously, the code I write in the end is English. But
             | explaining a domain in a native language - especially when
             | that domain embeds cultural things - helps a lot. For
             | example, there's a massive difference between
             | "add_high_VAT()" in a Dutch Context from a US context. Even
             | add_VAT(lookup_VAT("FR", "low")) demands quite some domain-
             | knowledge about EU tax system. Which I can express in
             | English, but is much easier in my native language.
        
           | dontupvoteme wrote:
           | I admit that I talk to it in English the most (as it's my
           | native tongue) but I had read here that it has gotten
           | noticeably worse in other languages, even making grammar
           | mistakes in linguistically-close-to-english-and-sufficently-
           | present-in-training-data western european languages like
           | German or French.
           | 
           | I do enjoy translating things into Sindarian or other
           | conglangs from literature though.
           | 
           | I had a theory that giving it the custom instructions in
           | latin might give better results, but i haven't had time to
           | figure out how to benchmark something that's so non-
           | deterministic and black-boxy
        
         | enigma20 wrote:
         | Why would be the language death bad. Imho, from practical point
         | of view it doesn't make sense to have multiple languages, or?
        
           | gostsamo wrote:
           | Kids cannot use foreign language tools to their full
           | abilities. However, if ChatGPT is good for english only, it
           | might stimulate some competition for providing similar
           | service in the local language. I won't mind it, tbh.
        
           | scythe wrote:
           | From a practical point of view it is probably good to have an
           | international _lingua franca_ , most likely a variation of
           | English not only due to its current popularity but because it
           | has accommodated a lot of simplifications [1,2] to make
           | itself easier to learn. But for local cultures it would be an
           | awful lot of work to translate centuries of tradition and
           | literature into a global language, or a lot to lose by
           | forgetting it. There is also a natural human tendency to
           | modify and evolve the language that we use, while an
           | international language has to be more stable or changes
           | regulated lest it fragment as Latin did 1500 years ago.
           | 
           | 1: http://en.wikipedia.org/wiki/Simplified_Technical_English
           | 
           | 2: Contrast particularly major rivals French and Mandarin
        
           | dontupvoteme wrote:
           | Language is culture, and if the sapir-whorf hypothesis holds,
           | different languages are literally different methods of
           | thinking.
           | 
           | there are also other potential benefits, e.g. "the" in
           | english gives little information about what noun may follow.
           | "die/das/der" in general cut the probability space to a
           | third.
        
             | kmlx wrote:
             | > "the" in english gives little information about what noun
             | may follow
             | 
             | for us non-native english speakers, this is an understated
             | blessing.
        
           | fomine3 wrote:
           | imperialism
        
         | bboygravity wrote:
         | Just weird to me that they build in Germany. Germany basically
         | pressed "delete" on (clean) energy for the coming decades and
         | has very little capacity to seriously expand their energy
         | conversion.
        
           | meesles wrote:
           | This is false. Germany is one of the few countries making
           | real progress towards a commitment to clean energy by 2050. I
           | think you're uninformed about the details and failing to
           | grasp the plan beyond a couple of headlines you saw.
        
             | throwaway1777 wrote:
             | Lol keep burning that biomass and calling it green.
        
           | j-pb wrote:
           | Germany has build more PV capacity in the last three years
           | than the total nuclear capacity it ever build, and the
           | numbers are increasing thanks to regulatory cutbacks by the
           | current government.
           | 
           | Meanwhile new nuclear reactors cost 4 times as much as
           | renewables and take decades to build.
           | 
           | So stop spreading FUD.
        
             | lacksconfidence wrote:
             | I don't disagree with your argument, but capacity is a
             | useless measurement. Without considering the capacity
             | factor you might as well be comparing apples to zebras.
        
             | cpursley wrote:
             | What are the actual numbers? Is PV reliable as nuclear? As
             | cheap as piped natural gas? Can VW build a profitable car
             | and Bosch a washing machine at those rates (vs very strong
             | competitors like South Korea)? Because that's what keeps
             | the German economy humming (and the EU together).
        
               | t43562 wrote:
               | VW is using renewables for building it's EVs.
        
               | cpursley wrote:
               | Best of luck to them, they're gonna need it.
        
         | llm_nerd wrote:
         | The fab is for chips that are something along the lines of 4
         | generations old, and that's ignoring that they won't start
         | manufacturing until 2027...
         | 
         | This has absolutely nothing to do with AI or LLMs. Generally
         | these are automation chips for machinery or vehicles.
         | 
         | "Microsoft made him walk that one back real quick"
         | 
         | This sounds like a weird fan fiction. OpenAI openly negotiates
         | with EU governments. No one walked back anything.
        
           | posterboy wrote:
           | Suppose you need automation for machinery in a cutting edge
           | fab, that would be much further in the future? They could
           | ship from Taiwan, so the idea that this is a back up does not
           | sound entirely wrong. Sounds like fan-fiction, too, true
           | enough.
           | 
           | AMD is already there and Intel is building in Lower Saxony.
           | Must be something about the region, perhaps the chemistry
           | since the Erzgebirge has a history in mining. Meisner
           | Porcelain for example beat Venice and replaced good old China
           | (pun intended).
           | 
           | > No one walked back anything.
           | 
           | I'm not sure about that (haven't heard this story).
           | 
           | My impression is that EU sticks to discretion very much, and
           | they aren't free from corruption. The US on the other hand is
           | not known to play nice with matters of law in international
           | affairs (Edit: shouldn't have said "international law").
           | 
           | Taiwan is a partner was the point, I believe. Of course they
           | aren't going to give away the crown jewels either.
        
             | logifail wrote:
             | > Must be something about the region [snip]
             | 
             | Following Occam's razor, perhaps it's that it's just
             | cheaper?
             | 
             | "The monthly pay ranking of German states is headed by
             | Hamburg with 3,619 euros, followed by Baden-Wurttemberg
             | with 3,546 euros and Hesse with 3,494 euros. The lowest
             | salaries are received by employees in Mecklenburg-Western
             | Pomerania with an average of 2,391 euros. Slightly more is
             | earned in Thuringia with 2,459 euros and Saxony with 2,479
             | euros."[0]
             | 
             | [0] https://www.deutschland.de/en/topic/business/pay-in-
             | germany-...
        
               | _Microft wrote:
               | The focus on electronics there goes back to the times of
               | the GDR already when the "VEB Kombinat Robotron" was
               | located in Saxony.
               | 
               | https://en.wikipedia.org/wiki/VEB_Robotron
        
               | logifail wrote:
               | > The focus on electronics there [..]
               | 
               | Can you expand on this claim?
               | 
               | (I'm deliberately resisting quoting sources listing
               | German regions top exports!)
        
           | yk wrote:
           | The technology is roughly 10 years behind, but in the
           | scenario that the replacement capability becomes important is
           | something like Trump fumbles the great power competition and
           | US and China have a nice nuclear moment. And frankly making
           | do with Haswell era CPUs is lamentable but as far as nuclear
           | exchanges go not that bad.
        
             | cpursley wrote:
             | Yeah, and the Biden admin hasn't done anything at all that
             | might provoke a nuclear exchange...
             | 
             | I'm always amused that some people never grow out of the
             | "our team is infallible" mentality.
        
               | exceptione wrote:
               | It is a bit off-topic, but the Biden admin hasn't done
               | anything like that indeed. In fact, nuclear exchange is
               | self-destruction. No one is stupid enough to do that,
               | even Trump wouldn't be. So parent's remark is off.
               | 
               | For chips to be blocked going to Germany doesn't thus
               | require a nuclear exchange. You rather should think of
               | smth like military aggression from China towards Taiwan.
        
               | cpursley wrote:
               | Shooting down the Chinese ballon and arming Ukraine with
               | long range weapons aren't potentially acts of provocation
               | against nuclear powers?
               | 
               | Reverse the roles. American ballon. Mexico getting armed
               | against the US by a foreign superpower and sworn enemy.
               | Would the US tolerate those acts?
        
               | smoldesu wrote:
               | > Would the US tolerate those acts?
               | 
               | Yes? What about their nuclear policy from the past half-
               | century convinces you otherwise?
        
               | justsomehnguy wrote:
               | In the last 50 years US never had anything on _their_
               | border.
        
               | smoldesu wrote:
               | Even if they did, it wouldn't change much.
               | 
               | 1. Nobody would launch nukes domestically, so moot point.
               | 
               | 2. Using nukes internationally would be a faux-pas beyond
               | fixing. Every modern, nuclear-equipped nation understands
               | this.
               | 
               | 3. The United States _doesn 't need_ nuclear weaponry to
               | dispel invaders, or even to retaliate against foreign
               | attacks. Their nuclear weapons exist to deter other
               | nuclear superpowers from using their weapons for petty
               | gain.
        
               | martin8412 wrote:
               | Absolutely agreed. The US military is so well funded and
               | capable that they could finish the job without needed to
               | resort to nukes.
        
               | [deleted]
        
               | sharts wrote:
               | Doesn't the US make regular use of depleted uranium
               | munitions? Particularly in the middle east?
               | 
               | Definitely seems nuclear.
        
               | djur wrote:
               | Depleted uranium is not a nuclear weapon.
        
               | exceptione wrote:
               | > Reverse the roles. American ballon
               | 
               | Ok. American balloon over China will be shot down. You
               | know the rules about air space, water etc?
               | 
               | Sincere advice: don't assume you have insights and
               | knowledge that is deeper than those from the experts.
               | This is a pitfall for us HN'ers.
        
               | cpursley wrote:
               | People forget that JFK nearly nuked the USSR over the
               | Cuban missile crisis (which was a response to NATO
               | missiles in Turkey, ironically enough).
        
               | djur wrote:
               | The missiles at question in the Cuban missile crisis were
               | nuclear. That's not a reasonable comparison to the non-
               | nuclear confrontation in Ukraine.
        
               | ToDougie wrote:
               | Might want to take a peek at a map of Eastern Europe.
        
               | exceptione wrote:
               | Thanks for your suggestion. There are a lot of things I
               | don't know, but this subject is somewhat the exception to
               | that. The US has made no nuclear threats, on the
               | contrary, it has done everything to remind the Kremlin,
               | which was and is threatening all kinds of countries with
               | nuclear blackmail, that doing so is off limits.
               | 
               | I will assume you were unknowingly repeating Kremlin
               | propaganda. Please don't.
        
               | yk wrote:
               | And where did I write anything about Biden?
        
               | cpursley wrote:
               | > Trump fumbles the great power competition
               | 
               | Your bias is clear here. I was trying to balance it.
        
               | tekla wrote:
               | Such as?
        
             | llm_nerd wrote:
             | Older generation fabs are critical. They power most of the
             | machines around us, and often pump out low priced but
             | capable chips. I certainly am not contesting that.
             | 
             | I responded to someone who seems to believe this is the
             | great AI equalizer. This fab has no relevance to AI. And
             | FWIW, Europe already has a number of much more advanced
             | fabs! Intel is currently upgrading Ireland to "Intel 4"
             | spec (which in TSMC land would be 7nm), and is building
             | other fabs, for instance.
             | 
             | Ultimately this story is "German automakers want more
             | control over supply chain of vanilla automation chips", and
             | not much more.
             | 
             | As an aside, it's always interesting that we talk about
             | Taiwan's revered chip prowess (South Korea is up there as
             | well)...when the Dutch company ASML is really the
             | technology key. TSMC executes extraordinarily well, but
             | they wouldn't be doing it without ASML.
        
               | samat wrote:
               | I am no expert, but my understanding is that to get nice
               | chips, you need both ASML and TSMC. They have very
               | different areas of expertise and posses very different
               | know hows.
        
             | demondemidi wrote:
             | Yes, that is intentional. There's more to the CPU market
             | than the next gaming platform.
        
         | zpeti wrote:
         | Is the EU marketing budget now doing sponsored posting on HN?
         | What the hell is this comment? It's completely wrong on facts
         | yet full of quasi praise for eu politics
        
         | kmlx wrote:
         | > putting together the pieces they need to keep up with AI and
         | maintain their ability to leverage their control mechanisms
         | upon the FAANGS.
         | 
         | from the press release itself:
         | 
         | > ESMC marks a significant step towards construction of a 300mm
         | fab to support the future capacity needs of the fast-growing
         | automotive and industrial sectors, with the final investment
         | decision pending confirmation of the level of public funding
         | for this project.
         | 
         | it's a 300mm fab.
         | 
         | > Realpolitk wise they absolutely cannot risk regulatory
         | capture to a few select firms on the west coast of the USA.
         | 
         | not only is this 40 years too late, but the press release
         | itself contradicts this comment.
        
           | pgeorgi wrote:
           | > it's a 300mm fab.
           | 
           | 300mm wafer diameter, yes. That's state of the art, with some
           | vendors looking at 450mm with little to show for now.
        
           | oytis wrote:
           | > it's a 300mm fab.
           | 
           | 300mm is larger than a vacuum tube!
        
         | ablated_maquis wrote:
         | > "The planned fab ... [is expected to produce] wafers on
         | TSMC's 28/22 nanometer planar CMOS and 16/12 nanometer FinFET
         | process technology"
         | 
         | These are not leading node semiconductors that will be used for
         | training AI. These are commodity chips that will be used in the
         | automotive industry.
        
         | nabakin wrote:
         | > Microsoft made him walk that one back real quick - he
         | probably wasn't really aware that he is now one of their
         | employees
         | 
         | Source?
        
         | nottorp wrote:
         | What does a low tech (for chips) chip fab have with AI?
        
         | coliveira wrote:
         | That's not the only issue. TSMC has a big problem in creating
         | fabs in the US, which is the lack of talent in sufficient
         | numbers for the project to be successful, and the very high
         | cost of existing talent. No surprise that they're delaying the
         | US fab and going ahead with plants in Germany, where there is
         | less expensive specialized labor.
        
         | tuyiown wrote:
         | > I really love their stubborn nature to stick with their
         | langauge over the anglo one
         | 
         | I think you're talking about the Quebecois, because the french
         | around here are swimming in a sea of _epouvantable_ mix of
         | french and english words. But as afterthought you're still
         | quite right, this mix usage is sliding downhill from ill
         | inspired managers to general low class now.
        
         | dna_polymerase wrote:
         | > Along with (hopefully) that french startup (Mistral) founded
         | by the LLaMA guys, the EU is putting together the pieces they
         | need to keep up with AI and maintain their ability to leverage
         | their control mechanisms upon the FAANGS.
         | 
         | These nodes are generations old and basically only in use in
         | German cars with their abysmal 'software'. The only touching
         | point these processors will ever have with AI is as an API
         | endpoint to Google Voice or Siri.
         | 
         | Moreover, Mistral was widely seen as a joke and testimony to
         | the catastrophic state European tech is in.
         | 
         | Europe is done. I have no idea why they rushed to regulate
         | anything. In the end the U.S. startups will tell us what to do.
         | Europe is a joke.
        
           | martin8412 wrote:
           | What abysmal software? The software in my VW is more than
           | adequate.
           | 
           | Not that I see what interest I'd have in any kind of AI in my
           | car.
           | 
           | Yes, these chips are for automotive and industrial use,
           | what's the problem? Those are both important use cases.
           | 
           | You may think Europe is done, but who makes the EUV
           | lithography machines used for TSMCs' cutting edge nodes? Who
           | makes the leading ERP system used by a lot of companies
           | around the world? Where was the Chrome V8 JavaScript engine
           | developed?
           | 
           | The point is, Europe has plenty of innovation. But unlike the
           | US, people don't go around boasting every chance they get.
           | People just do stuff and are happy with that.
        
       | rllearneratwork wrote:
       | Why there? Germany has some crazy labor laws, they will be in for
       | a surprise long term.
        
         | mrweasel wrote:
         | They aren't that crazy, where else would you build them...
         | France, Italy? German labor laws are pretty average for western
         | Europe.
         | 
         | You need stability, skilled and productive workers and it
         | wouldn't hurt to have a chemical industry, Germany has all
         | that.
        
           | rllearneratwork wrote:
           | USA (and yes, I know they are building some here already).
           | Maybe UK as well.
        
       | zhengiszen wrote:
       | [flagged]
        
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