[HN Gopher] TSMC's Arizona Plant to Start Making Advanced Chips
       ___________________________________________________________________
        
       TSMC's Arizona Plant to Start Making Advanced Chips
        
       Author : rbanffy
       Score  : 314 points
       Date   : 2024-12-27 19:43 UTC (1 days ago)
        
 (HTM) web link (spectrum.ieee.org)
 (TXT) w3m dump (spectrum.ieee.org)
        
       | osnium123 wrote:
       | Great news and arguably these are the most advanced
       | semiconductors being produced in the United States today.
        
         | teruakohatu wrote:
         | Wikipedia lists Intel 3 is roughly the same tech level as TSMC
         | 3nm [1], but without listing transistor density. Intel is
         | producing the Xeon 6 using Intel 3 [2]. So arguably Intel has a
         | more advanced process in the USA than TSMC, which is doing 4nm
         | in the USA next year. Intel's production is probably not very
         | high.
         | 
         | [1] https://en.wikipedia.org/wiki/3_nm_process#cite_note-74
         | 
         | [2]
         | https://www.intel.com/content/www/us/en/products/details/pro...
        
           | osnium123 wrote:
           | Is Intel 3 manufactured in the US or Ireland?
           | https://www.intel.com/content/www/us/en/newsroom/news/new-
           | fa...
           | 
           | Also, it depends on the metrics but TSMC's N4 is a mainstream
           | foundry logic node. Who is using Intel 4/3 outside of Intel?
        
             | kube-system wrote:
             | Looks like both according to this quote:
             | 
             | > Our Intel 3 is in high volume manufacturing in our Oregon
             | and Ireland factories
             | 
             | https://www.tomshardware.com/tech-industry/intel-3-3nm-
             | class...
        
           | georgeburdell wrote:
           | TSMC 3nm is a double digit percentage denser. Intel 3 is
           | closer to TSMC 5nm
        
             | soganess wrote:
             | Citation?
             | 
             | (Not intended as a snipe. I honestly just don't know where
             | to look for that kinda info.)
        
               | georgeburdell wrote:
               | Wikichip is my go to (which is down right now for me
               | unfortunately). It's important to look at the latest data
               | because Intel's internal nodes real specs have not met
               | the stated expectations recently
        
             | fooker wrote:
             | IIRC it was the other way around.
        
               | ryao wrote:
               | That was before Intel renamed their process nodes. They
               | went from being 1 node more dense to being 1 node less
               | dense with their new naming scheme. You need Intel 4 to
               | match TSMC 5nm.
        
             | silisili wrote:
             | I'm not refuting the statement, only pointing out that
             | density is not the only factor.
             | 
             | Unfortunately, these numbers are arbitrary and companies
             | are guessing what performs about like what based on
             | numerous factors. Often wrongly - Samsung's equivalents
             | were so bad Qualcomm pretty much abandoned them, and for
             | good reason. Anyone who used an Exynos or SD888 understands
             | why.
             | 
             | I feel like we should have landed on a better tracking
             | system now, like perf/watt, but here we are.
        
               | Dalewyn wrote:
               | >these numbers are arbitrary
               | 
               | Seeing as Intel 7 is formerly Intel 10nm, there is at
               | least a reasonable argument in that Intel's number is one
               | size(?) smaller than it should be.
        
               | silisili wrote:
               | It's equally likely Intel realized it performed as well
               | as Samsung/TSMC "7". Which is the whole issue, we'll
               | never really know.
        
         | ryao wrote:
         | These are 4nm facilities. Intel's 18A process is more advanced.
         | Hopefully it will turn out well. If not, that is the end of
         | Intel.
        
           | Dalewyn wrote:
           | >Intel's 18A process is more advanced.
           | 
           |  _Can be_ , not "is". I will believe them when I see it.
        
         | clumsysmurf wrote:
         | Maybe ...
         | 
         | But for those living close to the plant, I'm not so sure:
         | 
         | "Environmental, and public health groups, including the Sierra
         | Club, are urging President Joe Biden to veto a controversial
         | bill that exempts most semiconductor companies applying for
         | federal CHIPS Act funding from having to complete essential
         | environmental reviews, as required by the National
         | Environmental Policy Act, or NEPA."
         | 
         | "Exempting the semiconductor industry from NEPA is completely
         | unwarranted, especially considering the projected significant
         | increase use of PFAS and other toxic chemicals by the industry
         | and their track record of releasing these dangerous chemicals
         | into the air and water surrounding the facilities," said Tom
         | Fox, Senior Legislative Counsel at the Center for Environmental
         | Health"
         | 
         | https://www.sierraclub.org/press-releases/2024/10/environmen...
        
           | wbl wrote:
           | NEPA doesn't govern any releases: that's done by the EPA
           | under clean Air and clean water act.
        
       | dpedu wrote:
       | Is this fab on par with TSMC's fabs in Taiwan? I am not up to
       | date with the various processes.
        
         | wtallis wrote:
         | No. TSMC's 4nm processes are part of the 5nm family. 3nm has
         | been shipping for over a year, and is only fabbed in Taiwan for
         | now and the next few years.
        
           | hackernewds wrote:
           | And purposefully so to keep the "silicon shield" intact for
           | Taiwan. I did read that the yields in the US are just as good
        
           | mdasen wrote:
           | It's not on par with the best TSMC has in Taiwan, but most
           | companies are still using 4nm. Yes, 3nm has been shipping for
           | over a year - but only if your company is named Apple. Intel
           | just launched a small portion of its products using 3nm two
           | months ago.
           | 
           | I think realistically it'd be more fair to say that 3nm is
           | coming in 2025 and there's a huge distance between 2025 and
           | 2028 (when they'll start doing 3nm and 2nm in the US). Right
           | now, AMD, Nvidia, and Qualcomm aren't doing 3nm. If the world
           | lost 3nm today, it'd basically be Apple's products that would
           | get hit. It'd definitely screw over Apple and it'd mess up
           | the future plans for AMD, Nvidia, and Qualcomm, but it's not
           | like the industry has been using 3nm for over a year. No,
           | only Apple.
           | 
           | The big problem is that there's a big difference between
           | "we'll be bringing 3nm to the US in early 2026" and "we'll be
           | bringing 2nm and 3nm to the US in 2028". If they started
           | making 3nm in the US in early 2026, that's going to be less
           | than a year behind most companies using 3nm. Qualcomm and
           | Nvidia will probably start shipping 3nm in February 2025 and
           | AMD will probably start shipping 3nm in late 2025.
           | 
           | If TSMC's US fab were 12-18 months behind their Taiwan fabs,
           | it wouldn't really be a problem, except for Apple. Everyone
           | else is waiting 18 months for TSMC's latest gen stuff anyway.
           | 
           | The problem isn't that the US fab can't do 3nm today. TSMC's
           | Taiwan fabs aren't doing 3nm at scale unless your name is
           | Apple. The problem is that their US fabs won't be doing 3nm
           | for around 3 years after the industry moves over to 3nm. If
           | the US fab could satisfy 4nm demand and Taiwan disappeared
           | today, it'd mostly hit Apple's product line. The issue is
           | that in 2026 or 2027, every company will be relying on 3nm
           | and if Taiwan disappeared then, it'd hit the whole industry's
           | product lines.
           | 
           | But it's possible that Intel's 18A will do amazing and Intel
           | will be able to manufacture at scale and a lot of TSMC's
           | business will move to Intel. Then the US (Intel) would be
           | manufacturing more advanced chips than TSMC in Taiwan. TSMC
           | isn't expected to make the move to High-NA EUV for a few more
           | years so Intel has some time when it could overtake TSMC.
        
             | numpy-thagoras wrote:
             | It may not seem like much since it's only Apple right now,
             | but their 3nm SoCs are stunning. I can only imagine what
             | the industry is going to look like when this tech becomes
             | the standard. The miniaturization potential alone can
             | transform many other technologies, let alone its value for
             | low-power edge compute.
             | 
             | The difference isn't revolutionary, but noticeable. Whoever
             | has it will have a competitive advantage.
        
             | wtallis wrote:
             | > Yes, 3nm has been shipping for over a year - but only if
             | your company is named Apple. Intel just launched a small
             | portion of its products using 3nm two months ago.
             | 
             | > I think realistically it'd be more fair to say that 3nm
             | is coming in 2025
             | 
             | Almost everyone but Apple decided to skip N3B and wait for
             | the later N3E. Intel decided to just be late with N3B,
             | launching their laptop part in September and the desktop
             | part in October. Apple, Qualcomm, and Mediatek all have N3E
             | parts on shelves and in consumer's hands. 3nm is _here,
             | now_. Two generations of TSMC 3nm have ramped to full
             | production.
        
         | ryao wrote:
         | Taiwan has a law barring the export of technology more than one
         | generation behind:
         | 
         | https://www.taipeitimes.com/News/biz/archives/2024/11/08/200...
         | 
         | The article mentions that Arizona was set to ramp 4nm, which is
         | presumably what they have now.
        
           | rayiner wrote:
           | Why doesn't the U.S. have laws like that?
        
             | jazzyjackson wrote:
             | Because keeping the bleeding edge in manufacturing to
             | ourselves is not vital to our survival as a sovereign state
        
               | yieldcrv wrote:
               | yeah but stopping China from invading China isn't either
        
               | kayewiggin wrote:
               | China is in the beginning of a 30 year Great Depression,
               | in no shape to invade Taiwan. Consumer spending in
               | Beijing and Shanghai fell 20% y/y in November. Real
               | estate prices have collapsed 50%, even in some parts of
               | Beijing and Shanghai. Trump has filled the cabinet with
               | mostly anti-China hawks, indicating large tariffs coming
               | next year. Capital outflow from China increased to $45B
               | in November, largest monthly deficit ever. China is
               | pretty fucked.
        
               | Paradigma11 wrote:
               | That does sound like a fabulous time to start a
               | jingoistic war to flame the nationalistic sentiments and
               | declare any dissenters traitors to the nation.
        
               | azernik wrote:
               | It is for Taiwan
        
               | yieldcrv wrote:
               | and not going to be our problem for much longer,
               | 2028-2030 can't come fast enough
               | 
               | the US is selectively getting involved in worldwide
               | conflicts to deter China from invading China, and its
               | awkward, with arduous contrived rationales to maintain
               | its people's support
               | 
               | and once we get stateside semiconductors at low enough
               | nanometers we wont have to do any of that any more
               | 
               | I cant wait
               | 
               | good thing there are 185 _other_ countries that could
               | care if they really did. this wont be controversial to
               | point out, in the future. it will be a time period that
               | made little sense.
        
               | ebruchez wrote:
               | I am not sure if it is worth answering but here it goes
               | anyway:
               | 
               | 1. Taiwan is not China, any more than Ukraine is Russia,
               | except if you believe all the propaganda coming from the
               | mainland (or Russia). Ask any Taiwanese, and while many
               | consider and appreciate a solid Chinese cultural
               | heritage, they consider themselves independent and want
               | nothing to do with China (except business). Newer
               | generations of Taiwanese are even more independently-
               | minded and consider themselves even more Taiwanese than
               | the previous generations.
               | 
               | 2. Even if for some reason you truly think that it is the
               | same country or should be the same country, it is immoral
               | to wish that a peaceful, independent, democratic, and
               | open society like Taiwan's should be brutally attacked
               | and absorbed by a war-mongering,
               | authoritarian/dictatorial, opaque country. (Things could
               | be different if mainland China was democratic, but it
               | isn't, and won't be for a long time.)
               | 
               | 3. Even if for some reason you are ok with the above,
               | odds are that the difficulty and complexity of an attack
               | on Taiwan would end up being extraordinarily costly for
               | China (and Taiwan of course). It could lead to all sorts
               | of escalations in the region, sanctions, the collapse of
               | trade with China from the US and other countries, nuclear
               | proliferation (see Ukraine considering developing nuclear
               | weapons if they don't get security guarantees), and who
               | knows what else.
        
               | squillion wrote:
               | > Taiwan is not China
               | 
               | Taiwan might be considered a de facto independent
               | country, but according to most institutions it's
               | officially part of China.
               | 
               | 1. Taiwan's official name is _Republic of China_ (ROC):
               | it regards itself as part of China, and the sole
               | legitimate seat of China 's government. It's true however
               | that "it has not formally renounced its claim to the
               | mainland, but ROC government publications have
               | increasingly downplayed this historical claim". [1]
               | 
               | 2. In 1971, the UN General Assembly Resolution 2758
               | "recognized the People's Republic of China (PRC) as 'the
               | only legitimate representative of China to the United
               | Nations'". [2]
               | 
               | 3. Only 11 (tiny) countries officially recognize Taiwan
               | as an independent country, i.e. maintain full diplomatic
               | relations. [3]
               | 
               | 4. The U.S. official position is that "The United States
               | has a longstanding one China policy", and "we not support
               | Taiwan independence". [4]
               | 
               | [1] https://en.wikipedia.org/wiki/Taiwan#Foreign_relation
               | s_and_i... [2] https://en.wikipedia.org/wiki/United_Natio
               | ns_General_Assembl... [3] https://en.wikipedia.org/wiki/F
               | oreign_relations_of_Taiwan#Fu... [4]
               | https://www.state.gov/u-s-relations-with-taiwan/
        
               | ebruchez wrote:
               | There are several aspects that come into play:
               | 
               | 1. How the PRC (mainland China) regards Taiwan (or ROC).
               | 
               | 2. How Taiwan regards itself. This has changed over time.
               | 
               | 3. How third-parties play that situation.
               | 
               | Since Nixon's visit to China in the 1970s, the world
               | recognized that it was pointless to deny that the CCP
               | (Chinese Communist Party) ruled mainland China for good.
               | From there, the PRC progressively got official
               | recognition in institutions like the UN. In order not to
               | inflame the PRC's leadership and keep access to mainland
               | China, many countries state that they do not recognize or
               | encourage Taiwan's independence. But note that they also
               | maintain de facto diplomatic relationships, being careful
               | not to use the name "embassy" or "consulate".
               | 
               | In reality, Taiwan has been absolutely independent since
               | the 1950s. It's just that it's not officially recognized
               | by most institutions and countries for diplomatic
               | reasons.
               | 
               | I'll add that the "one China policy" is ambiguous by
               | design. It doesn't mean that it must happen in the
               | foreseeable future. It also doesn't mean that the PRC
               | should be allowed to take over Taiwan through military
               | might.
               | 
               | In the end, no matter what the various parties' policies
               | are, almost nobody in Taiwan at this point believes that
               | a peaceful so-called "reunification" is desirable or
               | possible. I put the word "reunification" in quotes in
               | particular because the CCP never controlled Taiwan, and
               | also because in general the historical argument doesn't
               | make any sense. Personally, I think that the principle of
               | self-determination is what should apply here, for moral
               | reasons. [1]
               | 
               | [1] https://en.wikipedia.org/wiki/Self-determination
        
               | yieldcrv wrote:
               | I'm aware, both entities have claims to the whole
               | mainland and still have China in their name
               | 
               | both entities would have territorial disputes with other
               | regions, that we don't agree with
               | 
               | some parts of the ROC have dropped claims to the mainland
               | 
               | and its all so hilarious that it reminds me how we, the
               | US, shouldn't be involved, and wont be after the
               | semiconductor problem is hedged
        
               | ThinkBeat wrote:
               | I presume you are aware that Taiwan is in fact occupied
               | by China now?
               | 
               | The Chinese who ran from the communist revolution,
               | invaded Taiwan, setup their own military dictatorship,
               | and they were extremely brutal to the natives Taiwanese.
               | (Sadly this has been their lot through several
               | occupations by different entities.)
               | 
               | During more recently history they have been polishing
               | more democratic values and life for the natives has
               | improved.
               | 
               | But for Taiwan to be free, in any proper sense, the
               | Chinese occupiers must leave.
        
               | rayiner wrote:
               | Why is "vital to our survival as a sovereign state" the
               | criterion?
        
               | gavindean90 wrote:
               | Because it is for Taiwan
        
             | alephnerd wrote:
             | Semiconductor fabrication was viewed as a commodified cost
             | center until COVID related supply chain instability.
             | 
             | Furthermore, packaging and testing was largely outsourced
             | and the domestic semiconductor industry imploded in the
             | 2010s with IBM Micro and AMD's failures.
             | 
             | The same thing happened to Japan when they began offshoring
             | Memory Fabrication to South Korea and Taiwan in the
             | 1990s-2000s.
             | 
             | That said, from a NatSec perspective legacy processes
             | (28nm, 48nm) and compound semiconductors would be much more
             | critical (and a significant amount of funding has been
             | devoted to that).
        
               | ryao wrote:
               | Japan is trying to rebuild its leading edge capability
               | with Rapidus using IBM technology. Interestingly, IBM
               | still does the research needed to make a fabrication
               | plant. They just don't want to assume the risks from
               | deploying it in production anymore as far as I can tell.
        
               | alephnerd wrote:
               | > Interestingly, IBM still does the research needed to
               | make a fabrication plant
               | 
               | Yep. They still own the IP from the IBM Microelectronics
               | days.
               | 
               | Much of the breakthroughs in EUV were done in Upstate NY
               | (especially at SUNY Albany, SUNY Polytechnic, and RPI),
               | and a lot of that was co-owned by IBM, ASML, and TEL.
               | 
               | > They just don't want to assume the risks
               | 
               | The capex - and pretty much.
               | 
               | Semiconductor Fabrication is high cost, low margins, so
               | it's difficult to spin up without industrial policy.
        
               | ryao wrote:
               | It is a shame that the 450mm transition did not occur. It
               | would have been better for all parties as it should have
               | lowered the cost of fabrication.
        
             | anigbrowl wrote:
             | Free market doctrine, plus the investor class wanting to be
             | able to reap the benefits of outsourcing without being
             | concerned about strategic issues. Occasional proposals to
             | this effect have historically been denounced as
             | protectionism, industrial policy (practically socialism!)
             | and 'picking winners and losers'. I am surprised you're
             | unaware of this.
        
             | selimthegrim wrote:
             | We had to give Japan something in the 90s to keep them on
             | side.
        
               | alephnerd wrote:
               | Japan itself largely began offshoring fabrication in the
               | 1990s.
               | 
               | It was Japanese OSAT players like Hitachi that sparked
               | the Penang packaging cluster in Malaysia in the 70s-90s
               | and Japanese Memory firms like NEC+Hitachi that started
               | South Korea and Taiwan's fabrication industries.
               | 
               | Taiwan didn't truly become a leader in the cutting edge
               | fab space until the 2010s when US, SK, and Japanese
               | players dropped the ball, and Apple chose TSMC in the
               | 2010s due to their patent litigation with Samsung (nixing
               | South Korea).
        
               | brcmthrowaway wrote:
               | So much of TSMC's dominance now is due to the influx of
               | Apple cash in the 2010s boosting R&D spending, which in
               | turn is because millenials bought a shit tonne of Apple
               | devices because they were convinced by marketing.
        
               | wtallis wrote:
               | TSMC's dominance is at least as much Intel's fault as it
               | is Apple's. And even if Apple hadn't been funneling so
               | much money to TSMC, the smartphone industry as a whole
               | still would have been a cash cow for TSMC. Intel sure
               | wasn't going to be in the running as a smartphone SoC
               | designer _or_ as a foundry for somebody else 's
               | smartphone SoCs. In an alternative history where Android
               | thoroughly beat out iOS even for high-end/high-margin
               | smartphones, Samsung's foundry business probably would
               | have been a bit better off, but overall it would still be
               | TSMC as the leading foundry, just with Qualcomm as the
               | launch customer for new nodes rather than Apple.
        
               | alephnerd wrote:
               | > Intel sure wasn't going to be in the running as a
               | smartphone SoC designer or as a foundry for somebody
               | else's smartphone SoCs
               | 
               | Intel did try doing this in the 2000s, but couldn't
               | justify the resourcing needed for this due to x86 as well
               | as their restrictive licensing of Intel Atom.
               | 
               | Meanwhile, ARM was fabless and just licensed to anyone (a
               | major reason why Chinese challenger brands exist in the
               | Chips space today)
               | 
               | Fundamentally, you cannot be both an IP creator (eg.
               | Design) and chip fabricator, as both functions have
               | different economics and competitive structures, and one
               | BU inevitabely holds the other back.
               | 
               | > Samsung's foundry business probably would have been a
               | bit better off, but overall it would still be TSMC as the
               | leading foundry
               | 
               | Samsung, SK Hynix, and other Korean players dropped the
               | ball due to the Apple lawsuit as well as the 2016-17 SK-
               | China trade war (impacted SK exports to China - including
               | intermediate parts) and the 2019-23 SK-Japan trade war (a
               | number of critical components in fabrication are supplied
               | by Japanese firms like Tokyo Electron and Nikon and were
               | impacted by mutual tariffs)
        
               | klooney wrote:
               | > Fundamentally, you cannot be both an IP creator (eg.
               | Design) and chip fabricator, as both functions have
               | different economics and competitive structures, and one
               | BU inevitabely holds the other back.
               | 
               | Vertical integration can win too, it worked for Intel for
               | decades.
        
               | alephnerd wrote:
               | Until it didn't.
               | 
               | Most players in the hardware industry try to specialize
               | in one function and do that very well, as this builds
               | your competitive advantage AND allows you to leverage
               | partnerships to further enhance your moat by building an
               | ecosystem.
               | 
               | For example, ARM is purely design driven - targeted
               | specifically at low power compute usecases - and licensed
               | it's IP out to just about any player, which allowed an
               | ecosystem to develop.
               | 
               | Nvidia did the same thing by remaining fabless and only
               | concentrating on GPUs.
               | 
               | TSMC concentrates only on fabrication and doesn't dare
               | enter design because they know all their customers would
               | leave overnight because they would not want to subsidize
               | a potential competitor.
               | 
               | Intel was in too many segments, which meant it was
               | inevitably competing with everybody, which forced
               | everyone to leverage partnerships to challenge the big
               | baddie.
               | 
               | A similar thing happened to Samsung to a certain extent
               | as well.
        
               | ryao wrote:
               | Apple pays TSMC better than anyone else does since they
               | want the best processes and are willing to pay a premium
               | to cover much of the investment needed to achieve them.
               | Losing them would really hurt TSMC. Not having them in
               | the 10s would have slowed down TSMC's development of new
               | process technology.
        
             | _DeadFred_ wrote:
             | Because we already have enough current/ex superfund sites.
             | 
             | (see the Santa Clara section here: https://en.wikipedia.org
             | /wiki/List_of_Superfund_sites_in_Cal...)
        
             | nrp wrote:
             | We do for a wide variety of products and IP:
             | https://www.trade.gov/us-export-controls
             | 
             | See also the US sanctions on SMIC.
        
             | kube-system wrote:
             | It does.
             | 
             | https://en.wikipedia.org/wiki/Export_Administration_Regulat
             | i...
             | 
             | And in fact, the machines that make these chips are
             | restricted by US export law:
             | 
             | https://www.asml.com/en/news/press-releases/2024/asml-
             | statem...
        
             | dylan604 wrote:
             | Regarding chips, if your best is generations behind someone
             | else's best, nobody want's to buy your old and busted
             | anyways.
        
             | fooker wrote:
             | The US had famously tried and failed to do this for
             | software techniques like cryptography.
        
           | ojbyrne wrote:
           | I think you meant "less than one generation behind." Or as
           | the article you linked to says: "Taiwanese law limits
           | domestic chipmakers to producing chips abroad that are at
           | least one generation less advanced than their fabs at home"
        
             | ryao wrote:
             | I did. My apologies for the typo.
        
           | wincy wrote:
           | I thought the machines that make this stuff come from ASML in
           | The Netherlands? How does this work, couldn't we buy the
           | machines from ASML?
        
             | bri3d wrote:
             | As I post every time this question gets asked: no. ASML
             | build fancy printers. Buy an ASML machine and you can now
             | etch nanometer-scale features into something. That's a
             | great party trick. You still need to know what features to
             | print and how to make the materials you print your design
             | on. The ASML part (lithography) is a hard part but it's not
             | even close to the biggest hard part. Thus, why
             | semiconductor processes are differentiated in the first
             | place.
        
               | MangoCoffee wrote:
               | Plus, ASML's EUV machines for TSMC are different from
               | those for Samsung or Intel. Each order is tailored to the
               | buyer's specifications.
               | 
               | TSMC's manufacturing process using ASML EUV machines is
               | different from Intel or Samsung.
               | 
               | People think you just buy an EUV machine, and you can
               | start printing money. Far from it.
        
               | ryao wrote:
               | Presumably, one could license IBM's 2nm research, buy the
               | equipment and try doing 2nm fabrication. That is what
               | Rapidus is doing.
        
           | codedokode wrote:
           | This is stupid. They should amend it to ban export of less
           | than 3 generations behind.
        
           | edgyquant wrote:
           | This seems like the exact kind of law that would not standup
           | to extreme pressure from a determined US president
        
             | Spooky23 wrote:
             | Taiwan has alot of leverage given the tension between the
             | US and China. The upcoming admin will be even easier on
             | play off.
        
           | nxobject wrote:
           | I wonder how the economics will end up - sure, American fabs
           | won't have cutting-edge processes, but in the end there's a
           | stable market for older processes that are critical to
           | industrial capability (e.g. automotive and sensing, high-
           | reliability processors, etc.) One node behind still remains
           | very good value without the visicssitudes of relying on the
           | unstable market for leading-edge products.
        
       | yieldcrv wrote:
       | > As more fabs open, the United States is also facing a shortage
       | of engineers and technicians.
       | 
       | levels.fyi says principle level engineers are making $86,000
       | annually in Taiwan, with zero shares. $49,000 being the average
       | for [software] engineers in Taiwan
       | 
       | there will be a shortage at that compensation range, which they
       | can solve with higher cash and amplify with shares and a
       | competitively short cliff like Meta and others have, of 3 months
       | or less.
        
         | magic_smoke_ee wrote:
         | Basically 25% of what American SWEs make. I can only surmise
         | the cost of living is much lower in Taiwan.
        
           | yieldcrv wrote:
           | yeah of course, but many organizations have a rigid corporate
           | ladder to overcome. this seems like one of them, and their
           | many "cultural differences".
           | 
           | they are incentivized to underpay americans, complain that
           | they "can't" find talent, to ensure the relevancy of Taiwan
           | 
           | but their arguments are weak and solved with compensation
        
             | j_walter wrote:
             | They are not solved with compensation...simply put
             | Taiwanese in both the US or Taiwan will put in more hours
             | and work harder regardless of pay. Will compensation get
             | some US workers to work as hard...yes...but not enough for
             | what is needed to expand the AZ plant and keep it running.
             | The numbers in the OP are Taiwan salaries...AZ salaries are
             | upwards of $140-150K (not including bonuses) for someone
             | with <10 years experience. These are not SWE...these are
             | mechanical, electrical and chemical engineers...not in
             | competition with Google, Apple, Meta, etc.
        
               | mook wrote:
               | Yep, not that many top-tier talent in the US willing to
               | be in the factory for the graveyard shift under high
               | pressure. The lines run 24/7 and if anything is slightly
               | wrong techs need to be already on site to go fix it,
               | because it's crap tons of money for every second of
               | downtime. That leads to a corporate culture where even
               | R&D has similar pressures from your boss (because
               | essentially you're always racing with the competing
               | fabs).
        
               | pm90 wrote:
               | Ive never understood this culture. This kind of operation
               | could be achieved by having several teams of folks
               | working in shifts so noone is working crazy long, no? It
               | seems like the company is unwilling to invest in the
               | manpower required to achieve that SLA? fwiw ive heard
               | similar things about the fruit company.
        
               | j_walter wrote:
               | They have 24/7 people on site, 4 shifts that cover the
               | work...but those are generally techs in the US, which
               | have associate degrees or less. In Taiwan they are
               | generally engineers that work the 24/7 shifts.
        
           | j_walter wrote:
           | They don't have that many SWE...so be careful on your
           | comparisons. 95% of their engineers are non-SWE...and those
           | engineering disciplines do not make 4X those salaries listed
           | above.
        
           | lifeformed wrote:
           | It is mostly, but real estate in Taipei is more expensive
           | than SF.
        
         | MangoCoffee wrote:
         | Let's get real. A lot of talent has gone into ad tech in the
         | U.S.
        
         | ryao wrote:
         | https://www.numbeo.com/cost-of-living/compare_cities.jsp?cou...
         | 
         | > Cost of Living Including Rent in Taipei is 59.0% lower than
         | in San Francisco, CA
         | 
         | Salaries tend to scale with cost of living. The cost of living
         | in Taiwan is lower than the US. The difference is particularly
         | large if you compare Taipei, the capital where the cost of
         | living is likely the highest, to San Francisco. Presumably, the
         | salaries would be higher if they hire people from the US.
        
           | siva7 wrote:
           | Even if you adjust for cost of living, the pay is still
           | significantly lower than US and somewhat lower than central
           | europe.
        
         | drtgh wrote:
         | By _" we are facing a shortage of engineers and technicians"_
         | they really mean _" we want to pay less to engineers and
         | technicians"_.
         | 
         | With the first type of statement, the industries are pursuing a
         | call effect, an excess of demand, which translates into the
         | second statement.
        
       | magic_smoke_ee wrote:
       | But not 2 nm node (N2{,P,X}) until about 2028. The delay is still
       | indicative of protectionism. Until the US has a (or preferably
       | more) American company with 2 nm capabilities with the whole
       | process including diffusion and packaging, there's no real
       | native, strategic capability.
        
         | atty wrote:
         | That is what Intel 18A is, no? In some ways it's worse than N2,
         | and in some ways it's better. Overall seems comparable to me,
         | and apparently it's still on track for next year.
        
         | ryao wrote:
         | What American company would even attempt this aside from Intel?
         | IBM still does the relevant research, but quit the business of
         | actually using it. They licensed their 2nm process technology
         | research to Japan's Rapidus if I recall. I cannot think of
         | anyone else in the US that would be willing to take the risk of
         | trying to start a 2nm foundry service.
        
           | oldpersonintx wrote:
           | Samsung is going for 2nm in Taylor TX
        
           | chasil wrote:
           | I've read in the interview below that all attempts to
           | implement IBM's copper interconnects failed, except for TSMC.
           | 
           | At least for this particular technology, IBM did not deliver
           | everything needed to do this.
           | 
           | "So, when we went to .13u, .13u the people began to change
           | from aluminum to copper. And IBM was the leader for the
           | copper metal. They had the longest history of developing
           | copper technology. They worked for more than ten years on
           | copper. TSMC didn't have any experience in copper at all. So,
           | when we decided we need to adopt copper, okay. So, the copper
           | is one story and low-k material is another one. IBM decided
           | kind of low-k material is a spin-on material called SILK. IBM
           | had a Research Consortium that IBM-- Samsung joined them, I
           | think, ST Micro joined them. Several companies joined the
           | Consortium.
           | 
           | "And UMC joined them. But we didn't join them. They all used
           | that spin-on low-K material. But we decided to use CVD -
           | instead of flourine-doped it's a carbon-doped made by Applied
           | Materials. They're called Black Diamond. So, we choose Black
           | Diamond. The reason we chose Black Diamond was very simple,
           | because I suffer at .18 with a spin-on. I wouldn't touch
           | spin-on again. <laughter> But they didn't go through that.
           | So, we were very, very lucky. TSMC became the first company
           | in the world which was able to ship a manufacturing wafers
           | with the copper and low-k, because IBM failed... Later on
           | they found reliability the problem."
           | 
           | https://www.computerhistory.org/collections/catalog/10279267.
           | ..
        
             | brennanpeterson wrote:
             | Spin in is an interesting tech history. As for cvd low-k,
             | it is mostly how much C is in your silicon, and likewise
             | how you setup the damascene etch stop. Intel was low-ish k
             | in about 2002 on 130nm.
             | 
             | I am not so sure tsm was first. Depends on how you define
             | lowk.
        
       | anon291 wrote:
       | Awesome!!!!
        
       | xenospn wrote:
       | Is it just me, or did this behemoth get built in record time?
       | Extremely impressive.
        
         | sangnoir wrote:
         | The CHIPs Act is a great piece of legislation.
        
           | redserk wrote:
           | CHIPS and the Inflation Reduction Act are two of the most
           | underrated domestic policy bills in recent American history.
           | Conservative-driven contrarian politicking aren't doing the
           | country any favors.
        
             | marxisttemp wrote:
             | As much as I dislike Biden from a leftist perspective, I
             | must commend him for the inflation reduction act. Felt
             | funny seeing a president actually, you know, improve the
             | country
        
               | xenospn wrote:
               | Do you dislike him because he's a leftist or because
               | you're a leftist?
        
               | jazzyjackson wrote:
               | (username is relevant here)
        
               | KerrAvon wrote:
               | This is getting way off topic, but Biden is a centrist.
               | The idea that he's a lefty socialist is a political
               | cudgel the right wing has swung at every Democratic prez
               | candidate since 1988; it's getting more traction in
               | recent years as the media has been increasingly purchased
               | by right wing billionaires. They called Obama a socialist
               | even as he was praising Reagan and helping out the
               | bankers who caused the 2008 economic meltdown.
               | 
               | Everything I'm saying here is a documented. Biden has
               | been in public service since 1973; look up his Senate
               | voting record. Look up the ownership and political
               | stances thereof for any given traditional media outlet;
               | newspapers, websites, etc.
               | 
               | "Biden is a lefty" is a false, lazy canard.
        
               | xenospn wrote:
               | That is correct.
        
               | marxisttemp wrote:
               | The latter
        
             | jimt1234 wrote:
             | Off topic: the Biden administration also made a commitment
             | to passenger rail, including high-speed rail, something the
             | rest of the world has had for years. Unfortunately, the
             | incoming administration will most likely kill all this.
             | 
             | https://www.whitehouse.gov/briefing-room/statements-
             | releases...
        
       | tester756 wrote:
       | But this plant cant stand alone, I mean if something bad happens
       | to TSMC on Taiwan, then they will no be able to move fab to the
       | newer nodes, I think.
        
         | iddan wrote:
         | Rome was not built in a day. I think it's a stepping stone for
         | that
        
           | tester756 wrote:
           | If there is no plan to make it standalone, even worse, for
           | TSMC it would be illegal to make this plant the leading one,
           | 
           | then still US should put more money into Intel
        
             | cute_boi wrote:
             | What will happen if US put more money into Intel? I believe
             | they have money, but they aren't focusing on cutting edge
             | technology.
        
         | Hilift wrote:
         | It's an awesome contingency. If the island falls, they can
         | destroy/impair the local infrastructure, and reconstitute it in
         | the US. Destroy in this context does not mean mass physical
         | destruction. It is a combination of removal of keys and select
         | components. The message being you can have the island but not
         | the business.
        
           | wbl wrote:
           | And? Advanced nodes aren't really relevant to subtracting
           | where it is from where it isn't. China is ideologically
           | motivated to conquer Taiwan not economically.
        
             | User23 wrote:
             | I think it's probably a case of both?
             | 
             | In any event it appears that reunification is essentially
             | inevitable and the only question is when. China doesn't
             | appear to feel especial urgency about it.
        
         | phendrenad2 wrote:
         | My understanding is it CAN stand alone, it's just not making
         | the most cutting-edge node (but it'll come with time).
        
       | WhereIsTheTruth wrote:
       | A victory for sovereign Taiwan, protecting the industry they
       | built from the ground up!
        
         | yupyupyups wrote:
         | Doesn't this remove the incentive for the US to protect Taiwan
         | then?
         | 
         | I'm speculating, but if China invades Taiwan, it's cheaper for
         | the US to bomb the fab in Taiwan to not let it get into Chinese
         | hands in case of an invasion. They could additionally offer
         | generous asylums to Taiwaneese researchers and engineers. Then
         | whatever happens to Taiwan happens?
        
           | 93po wrote:
           | The US is not anywhere close to replacing the outputs of
           | Taiwan. The US will be dependent on Taiwan chips for a long
           | time.
        
           | raincole wrote:
           | The parent comment was being sarcastic.
        
       | ksec wrote:
       | I just want to add the term "ADVANCED" in terms of foundry node
       | now has an official meaning anything sub 7nm. With specific rules
       | in place in terms of export especially to China. This was a
       | reference from ASML presentation not so long ago.
       | 
       | It is also important to point out, the achievement here is how
       | fast TSMC manage to set things up and running even without the
       | home ground advantage. Intel couldn't even replicate this time
       | frame if it was their Intel 7nm Fab. And of course the greatest
       | record was that with enough planning and permission done before
       | hand TSMC manage to have the fab built and running within 18
       | months in Taiwan. ( Arguably closer to 12 months )
       | 
       | This also means unless a miracle happen or US Gov being unfair
       | with certain things the chances of Intel catching up with its
       | current team, management, board members and investors, against
       | TSMC in terms of capacity, price, and lead time as a foundry is
       | close to zero. ( I am sorry but I lost all faith and hope now Pat
       | Gelsinger is out. )
       | 
       | Once TSMC 2nm hits the ground later this year, TSMC US will also
       | start their 3nm work if they haven't started now.
        
         | necovek wrote:
         | If you believe you can consistently predict future like that,
         | it should clearly guide your investment in stocks.
         | 
         | However, just like how quickly and suddenly Intel lost the
         | lead, things may turn around for TSMC too: at some point, their
         | research hits a dead end and somebody overtakes them too.
        
           | ksec wrote:
           | >If you believe you can consistently predict future like
           | that, it should clearly guide your investment in stocks.
           | 
           | Perhaps I should have written with Disclosures. For the
           | record I did invest in AMD when it was below $3 and TSMC at
           | below $400TWD. None of these are investment advices so take
           | it what you will. ( You get much better return with Tesla and
           | Nvidia in the same period of time but then investment isn't
           | always about best returns. ) And I was waiting to invest into
           | Intel, unfortunately Pat is gone. To my words I said this in
           | April 2023 [1]
           | 
           | " _I am just worried if Stock price continue to fall, Pat may
           | be forced out again by those stupid Board. And if Pat is out,
           | I won't invest in Intel at all._ "
           | 
           | As you will read in my reply below, I have a very negative
           | view on Intel's board for a very _very_ long time.
           | 
           | >However, just like how quickly and suddenly Intel lost the
           | lead
           | 
           | It wasn't quick or even sudden. I wrote about it in 2014 and
           | got a death threat from Intel Fan boys then. I have been
           | questioning about Intel's management on GPU, Fab capacity
           | allocation, CapEX, dividends etc for a very long time. For
           | another point, TSMC never wanted to be the most advance
           | manufacturing Fab. Them having leading node is purely
           | accidental and Intel's slip up. They have been doing Intel -1
           | node for most of their history and are doing just fine.
           | Providing Pure Play Foundry Services with Industry wide
           | support on Tools at a reasonable / acceptable price for
           | Fabless players. And right now, they are firing on all
           | cylinders.
           | 
           | Again. None of these are investment advices and personal
           | opinion only.
           | 
           | [1] https://news.ycombinator.com/item?id=35722974
        
             | necovek wrote:
             | "Sudden" with big enterprises is still a span of multiple
             | years: probably iX-4 series CPUs hit the wall on
             | performance, with power efficiency continuing improvements
             | into 2017 with iX-8*U CPUs -- so 2013 and 2017. And as soon
             | as their first Tick-Tock blip hit, it was clear to everyone
             | that they don't have a clear path forward.
             | 
             | In that sense, I fully expect the incumbent top fab to
             | maintain the lead for a number of years even when a
             | "sudden" competitor enters the market with clearer path
             | forward.
        
         | samdjstephens wrote:
         | It's about demand isn't it? TSMC have red hot demand, it's not
         | hard to understand their urgency in setting up new fabs,
         | wherever they may be. Intel don't have the same incentive -
         | their incentive is to take the money (because, why wouldn't
         | you), build newer fabs and hope for some breakthrough in
         | demand. The urgency is not there: being complete before there
         | is demand could be detrimental
        
           | ksec wrote:
           | >It's about demand isn't it?
           | 
           | Yes. There used to be a saying the most expensive Fab ( or
           | factory ) isn't the most advance Fab, but an _empty_ Fab.
           | 
           | You cant built without first ensuring you can fill it, you
           | cant fill it without first ensuring you can deliver. And
           | Intel has failed to deliver _twice_ with their custom
           | foundry. Both times with Nokia and Ericsson. How the two fall
           | for it twice is completely beyond me, but then Intel are
           | known to have very good sales teams.
           | 
           | Intel will need another Apple moment that has huge demand,
           | little margin, but willing to pay up front. On the assumption
           | that Intel is even price competitive. The Apple modem may be
           | it. But given the current situation with Intel as they want
           | to lower Capital spending I am not even sure if betting on
           | Intel is a risk Apple is willing to make. Comparing to a
           | stable consistent relationship with TSMC.
        
             | donavanm wrote:
             | > On the assumption that Intel is even price competitive.
             | The Apple modem may be it.
             | 
             | Which is super interesting/ironic with the entire reason
             | for an "apple modem" is due to Intels failure there a
             | decade ago. Bonus irony for the subsequent acquisition.
        
               | zitterbewegung wrote:
               | Intel wasn't able to ship a competitive modem to Qualcomm
               | and the whole point of the acquisition was to get rid of
               | Qualcomm and even apple hasn't gotten a shipping version
               | of a 5g modem for six years since the first intel modem
               | started in 2018. This was really to vertically integrate
               | the modem in all of the relevant Apple Silicon devices
               | and it keeps going on...
        
             | causality0 wrote:
             | At this point I'm starting to wonder if Intel's corporate
             | strategy is "pray all of the fabs in Taiwan are destroyed
             | during a Chinese invasion".
        
               | kayewiggin wrote:
               | Then Intel is going to have to wait for a very long time.
               | At best, China is currently in a scenario similar to
               | Japan's lost decade of 30 years or US's Great Depression.
               | At worst, China's current deflation + massive debt seems
               | eerily similar to Weimar Germany's early internal
               | devaluation. China is pretty fucked.
        
               | philipov wrote:
               | It's unwise to forget that the thing that pulled both the
               | US and Germany out of the Depression was war.
        
               | kayewiggin wrote:
               | US fully recovered from Great Depression in 1939, 2 years
               | before entering ww2. Weimar Germany started in 1918 and
               | ended in 1933 at the beginning of nazi Germany, 15 years
               | later.
               | 
               | You can't start a war when you are truly broke, much like
               | China is today. And China is aging super fast, unlike
               | Germany or US during the 30s.
        
             | Hikikomori wrote:
             | IIRC you can add LG to the list of intel failures.
        
           | amelius wrote:
           | I don't get it. If TSMC has demand, then so could Intel. What
           | am I missing?
        
             | jazzyjackson wrote:
             | TSMC makes nvidia GPUs and iPhone chips among other things,
             | intel doesn't
        
               | ninkendo wrote:
               | There was some discussion awhile back about Intel
               | potentially fabbing ARM chips (or any other custom
               | non-x86 chip) as a viable business in the future. I don't
               | know how serious they were but it sounded plausible when
               | you think about how important it is to have an American
               | leading edge fab, independent of the market future of the
               | x86 ISA.
               | 
               | Basically what would it take for Intel to still have
               | Apple as a customer even if Apple made their own ARM
               | designs...
        
             | dehugger wrote:
             | The missing bit is "TSMC makes better chips than Intel" and
             | thus they have higher demand.
        
               | amelius wrote:
               | Yes, but then there should be a higher level of urgency?
        
               | dehugger wrote:
               | Urgency with what? You asked why TSMC has higher demand
               | then Intel...
        
               | amelius wrote:
               | No, you have to read more of the thread to understand why
               | I asked it.
               | 
               | > TSMC have red hot demand, it's not hard to understand
               | their urgency in setting up new fabs, wherever they may
               | be. Intel don't have the same incentive (...)
        
               | dehugger wrote:
               | They set up a 3nm fab in the US in less than two years.
               | That seems pretty urgent on TSMCs part...
        
             | guipsp wrote:
             | You might be missing that you cannot just "port" across
             | fabs.
        
               | amelius wrote:
               | I honestly don't believe that e.g. Apple couldn't
               | relatively easily base their designs on a different
               | underlying technology.
               | 
               | They do it all the time when they change nodes.
        
               | wbl wrote:
               | Drop another billion is sort of the name of the game
               | here.
        
               | IshKebab wrote:
               | Why not? You might have to redo lots of phys work but
               | essentially all of the RTL will be the same and that's
               | the vast majority of the work.
               | 
               | Intel doesn't have demand because they only make Intel
               | chips, and they haven't been doing too well lately.
        
               | wbl wrote:
               | They feed into each other especially for anything that
               | isn't a vanilla gate. Got a deeply ported SRAM with
               | bypasses? That might fail synthesis if it is too choked
               | by wire rules for the size of the cells so now it's
               | banking time.
        
               | IshKebab wrote:
               | Right, you might get a different PPA...
               | 
               | I think realistically you wouldn't port the exact same
               | design between manufacturers. That would be a waste of
               | money unless one manufacturer is _really_ rinsing you.
               | 
               | More likely you'd switch manufacturers when you planned
               | to switch process nodes anyway, in which case the
               | increase in workload probably wouldn't be too bad.
        
         | amelius wrote:
         | I thought Xnm was just a marketing term and not related to any
         | physical measurements? How are they going to legally enforce
         | this if foundries can just change the naming convention?
        
       | icf80 wrote:
       | they are making "dies", they have to export them to china/taiwan
       | to make the finals chips... as far as I understand it.
        
       | ThinkBeat wrote:
       | This proves that with sufficient political and military pressure
       | and the ability to give away nearly unlimited amounts of money
       | you can get production moved to the US in a way that works,
       | 
       | (Any deals the US has with Taiwan, will always have a military
       | backdrop, they just recently took deliver of some nice new
       | military hardware). Stuff you will never see in Ukraine. )
        
       | elzbardico wrote:
       | What really baffles me is how Taiwans leadership can't see the US
       | endgame with the CHIPs act and the Chinese sanctions. The US
       | government wants to steal TSMC by using subterfuge, sheer force
       | and malice, while making Taiwan paying for it by refusing the
       | revenue of selling advanced chips to China. Not even TSMC should
       | feel safe even if they successfully relocate themselves to the
       | US. Buccaneering has a long tradition in Anglo-Saxon countries
       | and as TikTok shows the US has no qualms in preaching free
       | commerce, stable legal rules and all that bullshit to everyone
       | else, while doing the most egregious mercantilist stuff without
       | even an once of shame.
        
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