So does Intel intend to spend 28billion USD on its capital budget in 2021?
Cos that is what TSMC has budgeted.
Intel originally budgeted 17 billion for capital budget in 2020 and TSMC budgeted 17.2 billion.
However Intel actually spent less in 2020 just like I suspected.
Intel posted mixed results in the quarter, and also cut its capital spending. “Intel’s updated CY20 capex guidance to $14.2-$14.5 billion, from prior view of $15 billion.
Then why can’t the government help the entire industry rather than giving bailouts to one or two companies?
Like a stimulus all across the board with all firm in a certain industry?
Or why not let them compete and innovate instead of sucking the taxpayer’s teats? Intel is not in financial trouble.
Helping the entire industry? How much money do we have?
Well America is trying to retain a competitive edge but I’m sure there’s people collecting salaries just trying to keep the government money coming.
I love how you can’t believe Taiwan being exceptional economcially. There is no reason to believe TSMC will ever fall behind. Actually what is likely is that they further their gap with both Samsung and Intel and. Semiconductors naturally consolidates, not just because of market forces and logistics but technologically semiconductors get better with higher volume. Intel will have a very very hard time keeping up with TSMC.
Intel also does other things such as chip design and AI. TSMC does one thing and their investments are multiples of Intel. And all that in Taiwan with lower salaries and land costs.
That’s because they are literally the ‘lab rabbits’ for ASML.
I guarantee you TSMC got handsome subsidies from the state of Arizona to set up shop.
Same with Samsung in Texas.
Taiwan Semiconductor Manufacturing Co. has secured government subsidies for its envisioned $12 billion chip plant in Arizona, moving closer toward finalizing a facility designed to allay national security concerns and shift high-tech manufacturing to America.
No… but you wouldn’t expect Intel to be increasing capital expenditures while it’s struggling with their processes, would you (unless the manufacturing process struggles was tied to cap expenditure, which I’ve heard nobody suggest)? And how much of the TSMC expenditure is tied to Intel? But Intel is investing heavily in R&D, more than TSMC, which needs to be taken into account in the claim that TSMC is investing more than Intel - investment isn’t just building facilities.
Was there a reason to believe that Intel was going to fall behind? Or that HTC would become practically irrelevant?
99 reasons.
One, it’s a consumer-use product, which requires marketing that we know Taiwanese aren’t very good at.
Two, Cher Wang isn’t very talented.
TSMC’s biggest threat is you’re hitting a wall with Moore’s law and can’t go further unless you find a new way to get past.
HTC was a pretty successful oem and odm - i.e. they built other people’s stuff. In that market, when someone starts being able to do it better and / or cheaper, you get chewed up and spit out. The super large players have some built in protection due to being able to perform at scale, but I worry about even the likes of Foxconn.
TSMC is kind of in a weird middle ground - they have their own IP, but they’re also using it to primarily build other people’s stuff. They have a competitive advantage now, but I don’t see it as some impenetrable fortress that some here apparently do
HTC’s ODM hasn’t died, just transferred to Google. Pixel phones are 100% Taiwan designed.
It makes zero sense to mass-produce chips in the USA, unless you have huge government subsidies. And it’s becoming evident that TSMC and Samsung are every bit entitled to them as Intel is.
Again as I tried to explain it before, TSMC has volume and in semiconductors volume works like R&D. The fabrication process is almost purely empirical and volume allows you to hone your process just as much as spending on r&d.
TSMC’s model was destined to succeed and snowball and TSMC was the first that ran with the idea.
Also technological leadership in semiconductors lies in manufacturing, not design. By putting more and more transistors on a chip.
Uhhh, yea, sold off after struggling mightily.
By that logic, no one would’ve caught up to intel…
Like I said, they didn’t struggle because they’re bad at design. They’re still designing pixel phones.
Well, that’s not what you actually said, but I agree they didn’t have bad design. 