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B-b-but China said all their chips are self made and that sanctions only accelerate their technological progress. You mean they got caught lying through their teeth again?
Reuters could not determine how the chip ended up on the Huawei product.
Try to make an educated guess..
Reuters so not do that
Duct tape?
The Chinese government lying through its teeth? You don't say
How do US restrictions factor in here? TSMC is a Taiwanese company with only one operational plant in the US, the majority are in Taiwan, China, and Japan.
The US is the primary military force protecting Taiwan, by treaty. That's likely why.
And The US is A very big market and TSMC exports a lot of chips into the US.
Your friend knows a secret recipe for the best chocolate chip cookies. Your mother owns the best ovens in town.
Your friend cuts a deal with your mother to use her oven exclusively. Your mother agrees knowing she’ll get to charge your friend every time they use the ovens.
This is like that. The main value is in the design (recipe). Modern foundry’s are also complex and difficult to operate affordably, but they exist all over the planet. It’s ultimately the partnerships that makes it all possible.
Not all foundries are the same. Taiwan is leading the way for quite a long time.
There's a lot of money in both intellectual property and physical manufacturing. Trying to do an analogy with software is unfair because in software most of the costs is labor, and once the first copy is made you can make and sell as many extra copies as you want. Physical manufacturing needs machine maintenance, and expensive materials in this case.
They could ignore sanctions but that would mean they’d be sanctioned as well. Pretty much every manufacturer and financial institution has to obey laws in multiple jurisdictions if they want to operate within those markets.
Would the USA actually sanction TSMC though? Wouldn't that be a massive blow to companies like apple?
They need asml lithography equipment without which they are a nothing burger and to get that you need to play nice with US and EU.
Lithography but also clients like Apple, Intel, AMD and so on. Without them they’re also toast. World today is so interconnected that at large scale it’s really hard not to be compliant with sanctions.
at large scale it’s really hard not to be compliant with sanctions.
Russia seems to be find its way around them with some middle men surcharges
People talk about Apple only but every competitive chip designer (which Intel is not) depends on TSMC, so they all get set back.
But TSMC gets to close, and what's more dangerous for the political stability of Taiwan is that since they don't have oil they lose West military protection.
You are forgetting that Taiwan has an interest in supporting the U.S. led sanctions.
There is likely a lot of US tech in that chip. TSMC is just a fab, they don't have a lot of their own technology, they buy thousands of pieces of tech from all over the world to make their chips. A lot of that comes from the US.
Yes, but it would be an even bigger blow to TSMC if all US companies would stop buying from them. I'm pretty sure nvidia, AMD and Apple make a very sizable part of their customer base.
Not really. China would just buy it all if given the chance and the US companies would be fucked, since TSMC is practically a monopoly within its field at the moment.
It's not as easy, as TSMC needs ASML hardware, which wouldn't sell it to TSMC anymore because they also want to sell to US companies.
I didn't say it would be easy, but anything TSMC currently produces would likely find a new buyer even with no US customers, so in the short run the loser would not be TSMC. In the long run, it's pointless to speculate, since US would probably try to level Taiwan down rather than let China have the semiconductor sector to itself... Let's hope it doesn't come to that, though.
Do you think China could soak enough capacity to get TSMC to turn away from all of its major customers? Isn't most of their industrial design focused on consumer products with automaton, not high end chips? Are there many high end Chinese chip designs?
I'm sure TSMC would become untenable if either the US stopped buying or selling to them, though I tend to disagree and think that not licensing US tech would kill them faster. I'm pretty sure that much of that tech is not available from anywhere else and would just cause a full stop of their business, at least for some time. It's easier to survive on lower revenue than it is on a fully shuttered assembly line.
Countries willing to pass on a US patent to China stop getting the chips (or, in this case, chip-making jobs, realistically, but that still hurts)
Also Taiwan doesn't wanna help China and even if a US sanction was just an excuse to hurt China and get away with it they'd probably do it.
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this post was submitted on 27 Oct 2024
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