The Plan to Secure Taiwan’s AI Chips Amid Fears of a Chinese Invasion | WSJ
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- เผยแพร่เมื่อ 3 พ.ค. 2024
- Nvidia’s H100 chips are crucial to technology, from their use in smartphones to training complex AI chatbots. But Nvidia outsources their production to one company in Taiwan: the Taiwan Semiconductor Manufacturing Company, or TSMC. With China threatening to use force to take Taiwan if necessary, the U.S. is worried about a devastating impact on TSMC, which is at the heart of the AI revolution.
WSJ looks at what the U.S. is doing to secure the semiconductor chips supply chain before it’s too late.
Chapters:
0:00 The U.S.’s chip situation
1:15 TSMC’s power
1:51 The “Silicon Shield”
3:00 U.S. national security concerns
4:38 U.S. de-risking chips supply chain
5:40 Takeaways
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Some experts say that quantum computing will revolutionize business. WSJ visited IBM’s quantum computing research lab to learn more: on.wsj.com/447Jnbn
Can you guys do a documentary on the good old "Divide and Conquer" strategy that Western imperialists have been playing all over the world for centuries now? 😊
Create conflict in other people's regions, so you can reap the benefits. In this case, transfer TSMC's advanced chip making technology into the US.
What a shamelessly evil culture, the West is 😅
Actually the solution is quite easy, secure tw self defence capabilities and it’s democratic system
WSJ please change this voice. It is annoying for international viewers from Europe. Have another speaker or voice please.
Quantum technology is also China's strength.
Unions are evil and similar communists.
5:32 “TSMC is trying to get US visas for hundreds of skilled Taiwanese workers but American unions say this is an excuse to hire CHEAP FOREIGN LABOR.”
Is this a joke? Semiconductor workers are some of the most highly skilled, extremely specialized technical professionals in the world, and they are in desperately short supply. They are not migrant farm workers picking tomatoes or sweatshop workers making cheap sneakers.
Unions complaining about “cheap foreign labor” completely and hilariously misses the mark. It’s like being in Pompeii and complaining about air pollution as the volcano is erupting and lava is flowing down the street. Semiconductors are Priority #1 because they are National Security Vulnerability #1. We’re talking geopolitical meltdown, World War 3 level stakes, and with the pressure of an invasion countdown clock to boot, not to mention the specter of Artificial Super-Intelligence staring us down.
Imagine making chips in your country without anyone from your own country actually learning how the process works lol. How unreasonable to expect that businesses operating locally should employ the locals?
well said
Not exactly, a newly graduate with several weeks of training can do it.
Since when have collective-blackmail unions been about rationality or quality assurance?
Its dirty trick where the USA trying to steal the Intellectual Property.
Here is the irony, the US considers high tech chip manufacturing as a US technology and yet the US is unable to manufacture them without a foreign country.
Sematech again...
Intel, Texas Instruments, Microchip, Micron.... etc.
@@Kdgattowhere do do you think intel fabs their high end chips?
The design of the chips & machines used in chip fabrication are (in most part if not all) using US patents by US scientists/ organizations (aka US $$$). Yes, even the EUV or Ultra-EUV machines made by ASML (Dutch company) uses US patents in their design... The chip fabrication outsourcing to TSMC and therefore not incurring with the total cost of developing the manufacturing process from the ground up was one of the reasons why AMD was able to catch-up and even surpass (in some applications) Intel, which up until around 2020 had a "traditional" approach where they had to do R&D for the Chip design AND chip manufacturing (having difficulty in implementing/ using EUV machines) which effectively almost DOUBLED the cost of R&D as a whole for a new lithography process. Same thing that allowed Apple to design its own chip and have TSMC fabricate it for them, it would NOT have happened if they had to also invest in R&D on how to fabricate the chips because they would never make a profit (take the Apple Car project which was abandoned and had a much lower difficulty barrier).
TSMC obviously has its own proprietary techniques and extremely competent employees and undoubtably (together with Taiwan) became a node of extremely talented engineers & specialists in chip manufacturing, they haven't become the "beast" they are by luck. Nonetheless there was A LOT of western investment in making it what it is today. The threat of hindering the chip supply chain so that the US "pew-pew" industry falls short is a matter of national security. Security of interests & security of investments, so you wouldn't really want to facilitate technology transfer in anyway which could expedite a challenging country to "skip steps" you had to go through without incurring the cost and time to do so. Take Chinese "stealth fighters", capable copies of US & Russian aircraft which are now used to threaten... take a guess.... Taiwan! yay!
Hence why they are correctly bringing back fabs in the US as well as other strategic locations in the world with potentially lower geopolitical risk.
So the only ironic part of any of this is that you tried to make a snazzy comment, just to be schooled.
Grrr but me hate America so you’re wrong.
The key to Taiwan's success in high-end chip production is its engineering, researching, and production staff. Witout these talents, there is no chance of success making cutting edge chips in the US.
Good thing that the US is a huge country with many allies and open to migration. Plus they have deep traditions in chip manufaacturing.
Those talents travel, not to mention poll of people in US is a lot bigger than those of Taiwan-same goes for China
The main reason U$A will never able to compete in Chip manufacturing.
All the country that do well in chip manufacturing , has Confucianism culture.
For chip manufacturing, a high level of discipline is the key, and most Americans today don't possess it.
They call it “forced labour"
Taiwanese media reported on August 2 that TSMC claimed the production holdup at its Arizona facility was caused by a shortage of trained American labour and that they had sent staff from Taiwan to assist with the factory's development. Labour union officials in Arizona, on the other hand, criticised TSMC for exploiting this as a justification to bring in "low-wage foreign labour."
Samsung can make those AI chip and other chips as well but at lower yield rate, so Taiwan’s TSMC is just cheaper to make those, that is all. Also now TSMC is opening factories in US, Japan & Germany. I am not sure why everyone is making big fuss about it. So what if we are now using 3nm, 2nm or 1nm, as time goes by, it will be smaller by TSMC or Samsung. It is just TSMC is 1 year ahead of Samsung, that is all. future AI chips will be faster just like all other chips in history of time.
Slava TSMC 🇹🇼
Many Americans overlook why TSMC thrives in Taiwan. It's not solely about low labor costs-China's costs are even lower. Rather, it's the supportive ecosystem. Can you earn an EE master's, respond to 2 am calls, arrive in 2 hours, and locate all equipment/materials within a few hours to prevent millions in production losses?
labour union will prevent that.
we actually do here in the US as well lol.
And we have had for decades the same ecosystem here in the United States where most of the backbone of the semiconductor industry is based (KLA, Applied Materials, Cadence, Synopsis) and more than 90% of the chip designs (Apple, IBM, Intel, AMD, Qualcomm).
Labor is not a factor anymore -- look at the video of most Fabs -- very automated. The reason that Arizona is attractive to so many semiconductor companies is because 1) Cheap power - and the 2nd most stable grid in the USA, 2) Cheap land, 3) No natural disasters, 4) Cheap water (remember, 1/2 of Arizona looks like Colorado with 100's of lakes and underground aquifers), 5) A university (ASU) that graduates 7,000 engineers a year, 5) A semiconductor ecosystem that started in 1970s with Motorola and Intel that now spans 1000's of companies like ASM, ASML, Applied Materials, Tokyo Electron, Intel, Microchip, Amkor, EMD Electronics, Onsemi, Benchmark and many more.
Also what Americans overlook is that it was the One China policy that allowed for Taiwan to thrive with a stoppage of violence in the civil war. Now some geniuses have decided the One China policy is not convenient anymore. Hence the real reason TSMC has to build overseas.
Fun fact: The CEO of Nvidia and AMD are both Taiwanese,I would say Taiwanese has been dominant the entire artificial intelligence and semiconductor field.
They're also related
They are related
Dominant!？Lol. It is way too EARLY to say such thing.
They're blood related family
Fun fact - the founder of TSMC was born on Mainland China. Taiwanese are Han Chinese people
It’s never going to happen. TSMC is partially government owned. They will never, ever, let their cutting edge lines be moved abroad. They will let their older and current lines be moved, but never the cutting edge because 1. security and self-preservation, and 2. Cost.
Because of what again? Could you repeat that part again? You said SECURITY? And what was that other word- SELF-PRESERVATION?
China will gobble up Taiwan in an instant without US support.
I happen to think that Taiwan's government's main security interest is to NOT get conquered by the enemy.
They will send their absolute #1 best and most cutting edge chips over here, or their new boss will be Winnie the Pooh.
What are you talking about? Isn’t it already happening???
@@EhCloserLook no… I know this industry extremely well. TSMC will always have the bleeding edge in Taiwan. Everything outside will be a generation or two behind, which will still be top-notch.
But Apple, Nvidia, Alphabet, Meta, etc. do not really care about anything but the bleeding edge. Especially Apple and Nvidia.
So far, arguably what you said is right. but what if Samsung gains ground on TSMC and risks from China grow more in the future? Most of developed countries like US, Europe, Japan would not want to take some potential risks that China can make. Still, TSMC is beating the pants off Samsung overwhelmingly, but when they are caught up and have to compete equally with Samsung which is located in safe place compared to Taiwan, they will have no choice but to move their factories to other safe countries even the top-notch. It can be far future or there would be no possibility for Samsung to catch up, but as we know, there has been no company that always could hold the top position especially in Tech sector.
@@ussj-mb7dr it will take so, so much to even much TSMC at this point. For at least the next 15 years, they are virtually a monopoly on bleeding edge semiconductors.
The reason for that is that these factories as basically living, breathing organisms. And so much of it is the know how of building them like that, which only Taiwan has, and the people, skill set, tribal knowledge, patents, you name it.
Just to build a factory like that will take half a decade at best. Nailing it on first try, would be next to impossible. So, considering it will take a few tries to get there, it is still a long, long way off.
Taiwanese chip engineers "cheap labor" 😂
Compared to hiring similar engineers in the US or Europe, absolutely. Taiwanese engineers are known for working hours unimaginable for western engineers
Indeed, we are hard working people
Those you so called “cheap labor “ get share options from TSMC each year and I can tell you they are not cheap at all
@@peterk371 They work for a reason, not childless hr women who call you xir xor they thom
From a Taiwanese perspective, TSMC will success is actually based on exploiting the highly-skilled worker with salaries and resting hour that lower than the developed western countries, imagine you have to work over 10 hours per day and basically have to be prepared to be called back to the Fab if there is anything goes wrong, even you're on a vacation, and they pay you for about 100,000 every year. A LOT OF Taiwanese can accept such working environment and salary, while the Americans, I have to doubt that. Thus, the productivity of the Fabs in AZ may not be able to maintain the same as the Fabs in Taiwan.
Dear Patrick
I guess you forgot to mention the share options they get each year
If you work for tsmc for 10 years, basically you don’t need to worry about money for rest of your life
Dear Jenny, I guess you forgot to factor in the liver damage done due to the pressure and work hours. If you have enough liver damage, you don't have to worry about money for rest of your life. You have the life itself to worry about. Also, building fabs in expensive countries eats into the share values coz who makes the promise the foreign fabs are going to be as successful (or even profitable) without the conditions which makes Taiwan fabs successful in the first place.
@@jaybestemployee Agreed. Health > Wealth
@@jaybestemployee
Dear Jay,
I guess you forgot about other industries also have your so called liver pressure!
If you work in Wall Street, would you also have liver pressure?
If you are a miner , you would not only have liver pressure but also lungs pressure
A lot of the teachers in the western countries, they say they have heart pressure
Haha
@@jennychuang808 Dear Jenny, for one I heard bankers like to quit their job to open coffee shops like a lifestyle choice so the pressure is there, not sure to which organ. As adults, pressure is unavoidable. Point is what you are trading that for. They have a big number of printed (or digital) money for you to die for but you only have few organs which are also expensive if possible to replace. so make your choice and may god bless your liver. haha
Taiwan not only dominate chip making, but the entire chain of electric manufacturing. For example, who makes AI servers with AI chips? Still Taiwanese companies such as Foxconn
Slava 🇹🇼 Heroyam TAIWANese 🦾
China has now got their hands on these chips, guess what happens next.
NVIDIA and AMD CEO are also Taiwanese
@@tedstewart114boom 💥
@@tedstewart114 Impossible...
buffet sold his TSMC shares low, lost billions as a result of his wrong prediction making about TSMC and Taiwan's security.
Wouldn't transferring fabs to the outside Taiwan endanger Taiwan by removing their silicon shield?
You are thinking it like opening a bank branch abroad. The fabs are part of the local ecosystem, there is a steady supply of top engineering graduates in Taiwan who don't mind manufacturing work, which often not found in other countries. Its success also has a lot to do with Taiwan style management which would be rejected by employees in another country.
The cutting edge tech remains inside Taiwan, fabs outside Taiwan isn’t as advanced as it is inside.
Who cares?American Boss 🤔
tw is just playing card, u.s don't care anything but their own interests.
Taiwan is in danger either way as China has been pushing to make their own chips.
US companies sent the fabrication to lower labor cost areas many decades ago but kept R&D here. Now we have to pay them to bring it back and they still don't want to pay for the highly skilled labor it takes to do the final construction of the fabs. I used to be part of that workforce, but I'm happily retired now.
Free market capitalism created TSMC.
Slava 🇹🇼 Heroyam TSMC 🦾
@@s0kulite No hard work & $$$ can't make a company becoming the strongest on this planet..many companies failed the competition!
The fab in Japan will be mass-producing chips by the end of 2024. Not operational anytime soon is an incorrect comment.
Won't be the best chips likely
I read that it's 6-7nm chips, not the coveted 3nm
@@jctai100 None of the factories outside Taiwan will produce the highest-end chips, since TSMC is already slated to start building 2 nm and even 1 nm chips in the next few years.
@@MarkWTK It's actually 20nm & 28nm (Fab 1) for producing camera and automobile chips. Fab 2 Japan with 6nm to 12nm will come 3 years later. 😉
I believe only TSMC and Samsung are producing the best 3 nanometer chips. Intel is doing 5 nanometer while the best chip producer in China can only do 7 nanometer right now. The rest are are even more behind.
Real life Dune, semiconductors are the spice melange of our world 🤣
Yes yes it is
The Silicon must flow.....
😂😆 the sugar mounds must flow...lol
Taiwan is mostly important because it's in the First Chain of Islands. If it ever becomes part of China, it will be China's navy military base for the Pacific, and the USA will eventually have to leave the area. But I guess the microchips argument is easier to understand and digest.
The microchips are what is important to anyone who isn't China.
Correct. The U$ considers the island of Taiwan as their *unsinkable aircraft carrier* off the Chinese coast. So we can only hope that they won't be able to use it against Сhina the same way they have used Ukr against Rus.
At least you aren't pretending that it's about Taiwanese democracy. That Taiwan happens to be a functioning, vibrant democracy is an added rhetorical bonus lol
Who ever controls AI WILL control the world, its the technology of technologies, so the microchips argument is not `easy to understand` its the truth. Every single thing we have from ships to planes to tanks to cars every single one needs `intelligence` to build INTELLIGENCE its the most valuable thing in the world now and has been for centuries.
@@dunnowy123Imaging Chinese submarines operating out of east coast of Taiwan. US would lose their track in the deep water as soon as they left the bases. Right now, all Chinese submarines can be easily tracked in the shallow water of continental shelf around their current bases.
As a Taiwanese international student in the U.S. (computer science at a T20), I must criticize the Taiwanese government's dumb decisions. Long had the politicians complained that young engineers, especially those with dual citizenships, are leaving Taiwan -- yet they raised the military service from four months to a year.
I only escaped this mandatory service because I am epileptic (tonic-clonic seizure). Meanwhile, I have friends doing computer/electrical engineering in top universities like UCLA, UCB, and UW-Seattle, but many of them are giving up their Taiwanese citizenship or are planning to immigrate due to the military service that will waste their early 20s, the prime period for an engineer to advance academically and professionally.
In the professional field (especially Hsinchu's Science Park, which headquarters TSMC and Quanta Computer), labor regulations are especially ineffective. Legal issues like overworking, late payment, low or withheld wages, and a lack of paid leaves were never addressed, and companies consistently get away with exploiting tech workers. Bad corporational cultures overall, such as incomers needing to lick their bosses' boots and negative competition among coworkers, only serve to drive more talent overseas.
Hate me for this, but as a Taiwanese, I will much rather see the top semiconductor technologies stay in Taiwan rather than being moved overseas. Of course we are under the risk of being attacked, but I see no reason giving up corporational secrets in exchange for foreign countries' promises that may not be fulfilled. Still, Taiwan's government is making the decision to remain in Taiwan especially hard for this generation of students.
mei guo baba. Your gov has been bought up by special interests and most have houses in the US when bad stuff happens.
Fabs use an incredible amount of water, how does it make sense to build one in the deserts of Arizona
this is what happens when politics overtake practicality and good-business sense.
It's doomed to fail.
Colorado river supplies Arizona with most of its water. Yes levels of water in lake mead have gone down but I wouldn't say we are in danger or at a point that would cause us to impose restrictions on users.
Artificial water systems. efforts of reusing & recycling water is wiser for long term sustainability against short term logistical advantage of placing the fab factories near a body of water.
pork
I understand a good amount of water as pure and clean as possible is needed during startup but afterwards can be mostly but not completely self sustaining as water is recycled
Google is close to spending nearly $40 billion on a dumb CRM (hubspot) They should build a US version of TSMC instead
Thats called intel....theyll beat tsmc.
@@thehulk8539 I was in the system decades ago. no one can beat Taiwan's TSMC because you're not competing Intel such like company, you're competing the culture, the supplier chain, human resource that no company in any country has, can't copy, nor compete, even TSMC itself in other country.
@@user-ei3fp8yj5i I am sure it has nothing to do with chip making machines from ASML.
Its because of ecosystem taiwan has with china. They and Taiwan make up the talent pool together supporting eachother like ying yang(lol). You need their culture
Why would Google do that when dedicated US chip companies exist already and get subsidies? Think.
He who controls the spice,
controls the universe.
How is $6.6 billion enough for a US factory when you said it costs $20 billion to build one?
6.6 billion funding by the US government. The rest of the cost is paid by TSMC itself. TSMC has $161 billion USD in assets and $94.5 billion in equity so it should have more than enough to fund the rest of the plant.
@@elmagnificoroca But after many years TSMC still did not receive any $ 😅
Critical to US security yet they're sending Billions more to Ukraine, is that not a contradiction in terms "
I dont think TSMC plans to build the best chips in the US. Maybe the second best chips but not the best. Taiwan's dominance in chip manufacturing is part of its defense strategy for decades.
@@AJ-jx5gm AMD, NVIDIA, Apple and Qualcomm have told TSMC their chips MUST BE MADE IN THE USA. Which means the 2 and 1 nm will be built in TSMC Arizona.
Chris Miller’s book Chip Wars is a good read.
Even if they invaded Taiwan with the TSMC facilities intact, China lacks the technical know-how to maintain and operate those chip factories.
They are learning to make their own fabs😂
china's simc makes up to 7 nm chips, tell me how China can't maintain tsmc
@@user-go2fl1ow2kyeah
you know how to make a carpet, so you know how to build a car as well😂
so you assume Chinese will be invading TW with flying shovels and washing machines, right? Since all modern weapons needs chips🤓
Semiconductors has nothing to do with the China-Taiwan conflict. It’s the Chinese Civil War that has never officially ended.
An engineer who left TSMC last year said he had thought about joining the company’s overseas expansion drive, but lost interest after realizing he would likely have to pick up the slack for U.S. hires.
Microchips are not the most critical things to worry about. The really important one is geopolitical implication. If China takes Taiwan, then Chinaese Navy breaks out of the 1st island chain. PLA nuclear submarines launched from the east cost of Taiwan can easily slip into the depth of the Pacific Ocean without being detected. When they emerge again, they can be near the coastal of Los Angeles or any point of the continental west coast. This is more critical than the chips.
I know this won’t happen, and there would be consequences, but the Taiwanese government should leverage its capabilities to ensure more solid guarantees of support in the case of an event with China. Right now, the U.S. won’t commit to anything, which provides very little confidence to the Taiwan government. It’s a guessing game what the U.S. would do if China did something. The U.S. government is doing what’s best for the U.S., not Taiwan.
Even yesterday taiwan was hit by multiple earthquakes with upto 6.3 magnitude...very sad...all eggs in one basket does not bode well for the world..chip manufacturing should be spread evenly to asia , europe or north america as well so that the world economy can source supply from other countries...and US must protect taiwan by directly interfering to protect them not like Ukraine aid and weapons alone when china invades them!!!
True fact, western media often omitting the use of Taiwan's offical name(Republic of China) as a convenience. It is still its official name, just as America is known as United States of America.
From the field experience, to succeed in high-tech manufacturing, the engineering staff needs the following requirements: 1. talent 2. 100% dedication (work first, family 2nd) 3. if necessary, overtime is mandatory. Asian Engineers are competitive in all (3/3). American engineers are competitive only in talent (1/3). Politicians are ignorant, and their speeches are useless.
“Managing the type of workers”. It because the CHIPS act makes them hire on DEI idiocy and not just qualified workers. They have pushed back their fabs multiple times because of this in Arizona.
What is DEI
@@andrewday3206 Diversity Equity and Inclusion. It’s a movement you see the left try to push into everything. It’s nothing but a bunch of post modern racism.
@@andrewday3206diversity something
The latest information is that BH200 is NVIDIA's latest product. Please update your information.
Did you forget to color correct the interview footage? Looks like log
You can produce many semiconductor wafers, but please consider the cost, the source of raw materials, and ultimately where the largest sales are.
even if china invades/takes over taiwan (probably damaging/destroying the chip factories in the process) - nobody from mainland china has the expertise/experience to manufacture these chips like the taiwanese do (who’ve been building up that industry for decades, & lead the world in that field)
It’s simplistic to assume it’s only about the chips. For china it’s about prestige internal security and cohesion and also very importantly about crippling us pacific defence chains the run through Taiwan.
Xi Jinping is the biggest robber in the world history. England can’t even compared.
China doesn’t care about Taiwan’s Chip. The reunification is pure about history and nationalism.
But China can produce relative lower chip all by thierselves, not many other countries can say the same. So destorying the chip factories at least can level the playground for a while.
China's fabs are 3 years behind Taiwan's fabs in terms of technology. I'm sure they could figure it out.
Xi jingping, please don’t
The US mafia creates insecurity to sell security. You should point your finger elsewhere.
Very informative! 🌐 The geopolitical aspect of AI is eye-opening.
How much of the US so called grants actually awarded to TSMC after it signed the agreement to build the factory?
These chip factories should have been built in the US a long time ago
it’s Taiwanese technology. They decide where it can be built or not. US corporations don’t have the patents and the knowledge. Since American corporations didn’t invest/succeed at the time the technologies were developed. The US can’t steal it from Taiwanese corporations. And for national security reasons Taiwan likely won’t allow too much production outside of Taiwan.
@@hakkebrakke8575it’s actually dutch and german technology. The lithography machines and lenses. Taiwan commercialised it at scale.
There are always those who oppose investments in new technologies, unfortunately. At least we're fortunate enough to have had Taiwan as the pioneer in this respect.
@@thedownunderverseSomeone compared it to a restaurant or bakery. The Dutch supply the oven but the Taiwanese is the Chef or cook.
they were in the US a long time ago , but diminishing costs abroad made it so basically every tech company started to make their chips offshore.
“Chip War” is a fantastic book btw
This is important. Conflict is ahead.
US lacks chip making ecosystem. The silicon wafers made at Arizona fab had to be shipped back to Asia for packaging. What good is that for 😂. Japan on the other hand will more likely to be successful at regaining semi manufacturing prowess.
This is also what I heard from the industry insiders.
There is a robust ecosystem of over 1000 semiconductor companies in Arizona and Amkor is spending $2B on a plant down the road from TSMC to package the chips. 100% American made
@@Maxpasadena Critical tech is still kept in Taiwan.
@@censoredyoutube4902 As in WHAT? I don't think you know what you are talking about. The chips will be made in America for American companies. Nothing will be shipped back to Taiwan - which would defeat the purpose of building the fabs here in the first place.
Love the dumb dragon on the thumbnail
The fabs being built in the us will be obsolete and not on the cutting edge by the time they are built
This makes more sense now in the times we are living in !!
The censorship on this comment section is on a whole different level. You can't even use normal words to explain basic concepts, apparently. I'll remind myself not to watch videos from Wall Street Journal in the future, since clearly the owner of the channel hates intelligent conversation. I know this comment will probably disappear as well, but whatever. Goodbye.
TH-cam partakes in a lot of filtering that may be mistaken for the individual channel
@@kv4648 I made sure only to use completely inoffensive words to explain a basic economic concept. It never got through. On other channels I've made similar comments with no issues, so it's 100% a problem with the channel filter. I'm honestly surprised my comment above didn't get the same treatment.
@@VVayVVard It's basic YT cen*orship.
It's complicated, but very dumb words can be cen*ored by YT's algo.
Welcome to the world of corporation-control
This channel is quickly becoming one of my favs
Is this a union jobs program or a national security program?
I can see how the presence of TSMC could act as a deterrent to an invasion but also as an incentive
"US is committed to bombing the chip factory. This shows our commitment to Taiwan's independence" the irony in that sentence...
It does, logically. Without this type of commitment, the other side could expect to gain much more from a unilateral change in the status quo. With the commitment, the value they can expect to derive from doing so diminishes. Thereby making the continuation of Taiwanese independence more likely.
I thought exactly this.. The irony!...
The main reason U$A will never able to compete in Chip manufacturing.
All the country that do well in chip manufacturing , has Confucianism culture.
For chip manufacturing, a high level of discipline is the key, and most Americans today don't possess it.
They call it “forced labour"
Taiwanese media reported on August 2 that TSMC claimed the production holdup at its Arizona facility was caused by a shortage of trained American labour and that they had sent staff from Taiwan to assist with the factory's development. Labour union officials in Arizona, on the other hand, criticised TSMC for exploiting this as a justification to bring in "low-wage foreign labour."
Why? basically the foreign fabs are the permits required to continue selling to those self-protecting regions. Now the foreign govs are subsidizing those fabs heavily and god knows how cost-efficient a business can be under heavy subsidies.
That doesn’t make sense that the Japan tsmc plants aren’t making cutting edge chips when Japan is investing 4 billion in the plants and the other 4 billion by tsmc
I laugh when they say it’s hard to find funds to build a fab factory when we just allowed 95 billion to be sent to Ukraine
And what about billions sent to israel
Fabs its economy issue at first place.
Ukraine case is a national security issue at first place
.
95 Billion not in cash !
but it's local investment in local industry , reinvestment in American companies.
Fabs etc .. private companies from all the world and there is limitation for subsides
subsides subsides theoretically is against the free market roles, and that make a lot of other big economies make the same, and all the idea behind free market will destroyed
To the Chinese it’s going to be that if they can’t access the chips, then no one else will.
And they will rebuild it, and it will start producing the same chips within few years even if they destroy it.
It's China.
You are projecting American behavior on China. The U.S. is sanctioning China via chip access
This statement, to this date, has never been true
Isn't that the US's goal? Literally at 3:30 they said USA plans to blow up Taiwanese chip fabs.
Slava TSMC 🇹🇼
Nice video
They have billions of dollars for WAR but when it comes to building chip plants outside of Taiwan, all of a sudden, nobody knows where the money is going to come from. Man, this is crazy.
Always "amazed" by the US politicians' ignorance and inexperience ~
How would the people of Taiwan feel or see the United States taking their homeland and industry for granted?
I can image the Chinese media using Title like: Race for Taiwan's AI chips amid fears of U.S. hostile takeover!
Failed to mention that tsmc has fabs in China producing 16nm chips, and only Taiwan has advanced chip packaging facilities so future chips produced in Arizona must be shipped back to Taiwan packaging
WOW! They are huge.
There's no work-life balance for engineers in Taiwan. TSMC Phoenix is a stepping stone to Intel.
Intel sucks and can’t make things happen. People would forget about them in the AI Era
We need to protect Taiwan, not only for economic reasons but because they are a shining example of a wealthy, prosperous, and democratic country. Taiwan is a shinning example of how freedom can lead to prosperity. And they did all this, despite the animosity of China.
The One China policy is what protected Taiwan. But you prefer to fight??? How does that make sense...??
@@Amidat Why is Taiwan related to Chinese policy? Taiwan self-identifies as separate from China, and China has never governed Taiwan.
@@genuinennessbefitting4734 Because the western media doesn't tell you the truth. The constitution on the island calls itself the Republic of China and claims the territory of Mainland China as well. From the founding of the UN until the 1970's Taiwan represented ALL of China at the UN. A vote was hold to see what most countries believed as to who should represent China as a result of a stalled civil war. They voted Beijing... That started the One China policy among almost all countries. Go read it yourself. Don't rely on the lying media
WSJ missed the complete other angle of this - China is investing in fab facilites just as much if not more than the US is. They're trying themselves to cut Taiwan chip manufacturing off so their supply chain won't be disrupted if they invade.
Those fabs are significantly worse quality than the TSMC controlled fabs in the US and Japan, but they're still spooling up as well. When we talk about supply chain interruptions, we should probably acknowledge the adversary in the room.
China does not yet have the technological know how to replicate Taiwan's cutting edge fabrication infrastructure, but we can't count on the PRC to not catch up at some point.
TSMC's Arizona fab is targeting 5nm by 2026 and wafers still need to be shipped to Asia including China for packaging
SMIC is already producing 5nm this year and China already have everything from ingot production to wafer to packaging to assembly
US policy are set by tech illiterate politicians with no idea how the industry works, it's almost comical.
@@bearowen5480Pretty sure they have the know how, they've been poaching TSMC employees for a while now. I'm pretty sure they lack the full supply line though, especially if they get cut off from ASML
Industry experts are now saying that China is only 3 years behind on the leading edge chip fabriation technology, and the present size of chips can only get a little bit smaller. In other words, in 10-15 years, China will be caught up with the leading edge chip manufacturing technology.
It's not just a matter of 'spooling up', though. These technologies are the result of a series of breakthroughs so unlikely that there's usually only one player in the space with the arsenal of trade secrets sufficient enough to compete. Like ASML or Zeiss, for example. It's not simply years away, its multiple, successive breakthroughs away all coming together to not just make a chip, but make them reliably enough that the yield is economically viable and at a time scale that aligns with the west's momentum in pursuing Moore's law. It's not a finish line that you just need to keep steady pace on, it's a series of never ending ultramarathons through the Himalayas. If WSJ were to really dive into this angle, they would have to explain the embargos, national interest preservation measures, limitations of physics, yield and economics, never-ending supply chains, trade secrets, etc. They could, but I don't call foul for leaving it out of this video. However, I think your idea is a great idea for a video series from the WSJ.
While I agree the WSJ could have shown the china angle more explicitly, the threat from China is inherent. I don't think it was implied that China would invade to acquire TSMC, the play would always be to cripple the west. They definitely did acknowledge the adversary in the room.
Silicon chips are essentially very fancy sand. There's nothing inherently scarce/expensive about the atoms that make them up. With better and better industrial infrastructure, the cost of compute will asymptotically approach $0, limited only by energy's ability to approach $0 and the cost of sand itself.
This is great. Thanks!
The first TSMC Fab in Phoenix is now operational and will start mass production 6-8 mos. The second fab is 50% complete and both Fab 2 and 3 will, according to TSMC CEO, be twins with Taiwan producing 2 and 1 NM chips. I would expect the 3 additional fabs (TSMC has the land) to start construction sooner than later. In the meantime, NXP has added a new Fab in Phoenix in addition to Microchip and Onsemi Fabs. Intel is 1 year away from opening two new Fabs which will solidify Phoenix (Chandler) as the largest manufacturing facility for Intel. With the addition of the Texas Instruments expansions in Texas and Utah, Intel expansions in Ohio, New Mexico and Oregon, along with Global Foundries expansion in New York state, Samsung in Texas, Wolfspeed in North Carolina, Micron in Idaho and New York and SK Hynix in Indiana (along with packaging giant Amkor's new Phoenix facility) the United States will not only lead the world in semiconductor equipment and design but shear capacity.
1.6nm in Taiwan and cowls
It’s too colonialist thinking. If China wants to unify Taiwan by force, it will be for sovereignty rather than chips or other resources. The Chinese people’s thinking is different from that of Americans. Doesn’t China know how to make chips? China has broken through 7-nanometer chips within three years, and 5-nanometer chips will appear next year.
Who are you going to sell the advanced chips to for profit? Which country is the biggest market for advanced chips?
For foreign speakers, they are pronouncing the word silicon, as "sil-ah-kin. It's a common corruption of the word.
Most of these new fabs will eventually shut down as there will be a glut of fab capacity. Before they were built existing fab capacity was enough to satisfy global demand and with Chinese built fabs on the mainland expanding it will only make the glut worse with depressed prices especially for non cutting edge chips.
The irony is that the founder of TMSC used to work for Texas Instruments. Why did he leave to setup his own company? He was constantly looked over for promotion because of his race. The US did it to themselves.
Liar.
He rose thru the ranks at Texas Instruments until he became group vice president. That's not something a racist company allows. He left cuz d company changed biz direction.
Find another blame.
Taiwan recalled nationals back and the TSMC founder answered that call. He also foresaw the tech boom to be Asian focused in the 80s and made a move back. Can’t fault him for that. He spent his childhood over there.
@@swimmerboy172 He was born in Mainland China.
Ultimate irony is TSMC founder wasn't born on Taiwan nor in the US. The biggest irony is where he was born. Check it out.
What exactly did the United States do to itself? Taiwan has TSMC and a couple of other companies. The United States is home to all of the companies that matter - Intel, AMD, NVIDIA, Qualcomm, Synopsis, Cadence, Texas Instruments, Applied Materials, Amkor, Super Micro, and the list goes on.
I dont think american workers can make those chips.
yes, but higher price 😄
Interesting.
Engineers not walking over that southern border? Whodathunkit!
👇Alternative title👇
When China takes over Taiwan?
The moment America doesn’t need TSMC 🤏
Fix your title. Replace secure with steal.
How is it steal when Taiwan is willingly moving its operations to safe places facing the existential threat posed by CCP?
Lone Wolf Diplomacy making enemies all around you not working out for you?
CCP made this bed.
Thats a nice Island ya got there. Id hate for anything bad happen to it.
not true TSMC does not produce over 90% of the world's most advances chip. they produce over 90% of the world's most advanced logic chips but not ram chips
Ah WSJ, the red scare news network
To be honest, I have heard about too many revolutions in the last two decades, and yet, we still have huge wealth gap in American society and we have more wars worldwide. We are not getting richer or better as a nation.
No water at Arizona, no ultrapure water for the silicon foundry.
France, Germany and Japan is a good place to build a factory. Its heavily guarded.
AZ is poor choice; Fab facilities need profound amount of water?!?! Why not design in a northern state? Plus, Americans lack the tech knowledge for these extremely complicated Fabs... free STEM college would help...
The US has deep traditions in creating chips. Not so long ago, they were the leaders in chip manufacturing.
Arizona has a diverse portfolio of water. Phoenix Metro uses no more water today with 5.1 million residents as it used in 1990 with 2 million residents. The Colorado River only accounts for 36% with most of that going to agriculture.
Look at Google earth -- half of Arizona is made up of mountainous forests with lakes and a lot of annual snowfall. Combined with vast aquifers water is cheaper than most other places. Also, over 90% of the TSMC water will be recycled just as Intel and Samsung recycle the bulk of their water.
Do you know China’s modern history? Do you know why the Kuomintang is in Taiwan? And the United Nations does not include Taiwan?In fact, China values the integrity of its national territory more.Not the dozens of machines on the island
Do you not know KMT is not our government now. Tsai and Lai are both DPP. Anti-China.... The Chinese claim to Taiwan is actually very weak. Only for 4 years (end of WW2-1949) was more than half of the island controlled from China. The Japanese rule lasted far longer (and was the first real governing of the whole island under one government). Before that most of the land was under Taiwanese Aboriginal control. That we are not in the UN is only because of the China veto power.
Cyberdyne Systems
Why is the most important product in the supply chain only built on an island in the pacific next to enemies?
Because they were the ones to invest in that technology. Free market capitalism.
Because Taiwan's Morris Chang came up with the idea of semiconductor foundry (i.e. only manufacturing) while Intel insisted on design+manufacture.
Because no American company made the right moves to capitalize on this market. It's called free market capitalism which American espouses, tends to be pretty good at, but can't always emerge victorious in every market. So deal with it 😂
Because it got built, and then you decided to treat China as an enemy.
why is it that you buy into the propaganda that the most important foreign relationship right now is the enemy?
Yeah news outlets. Keep the fear on. That's how we get increased prices for goods, like chips, even without any invasion
Most people complain jobs are taken by foreign workers cant even pass the calculus class in college.
Why doesn't Intel, MS, Apple, Elon, Amazon, etc get together to build a giant chip factory out in the desert near area51 (for protection). All that solar power they could harness....
wsj? journalism for the illiterates
Alternative title: how can we justify for forcing Taiwan to transfer all their semi know-how and capacities to us
No one's forcing Taiwan, it's in TSMC's own interest
It's hard to act tough against someone with hand on your life support plug.
USA is salivating on Taiwanese semiconductor industry. China has become self reliant on chip manufacturing since the US sanctions on Huawei. If Taiwan requested a reunification with China then USA will be the biggest cry baby crying foul
@@nocash8179Americans are not too well versed in news and history. That's why most people commenting on this video are praising the video...
It's not really a "know how" issue, most of their chip designs already come from the US anyway. It's more just an infrastructure issue, they have invested the resources into building complex factories, while we did not.
Random PDiddy at @2:31
Don't worry about it, Taiwan is part of China under International Law.
yeah of course US media skips that.
What law? Can we set up a law to define pigs and humans?
by your logic china did it to hong kong
Сhina cannot invade ROC. That's like saying that the U$ will inv California. A country cannot invade itself.
TSMC's Arizona fab on completion will only makes up 4% of just TSMC's own global volume, on a 5nm node that by then will be 2 generation behind leading edge and might even be 1 generation behind China's SMIC, wafers produced there will still need to be shipped to Asia for packaging into chips, and even then US still lack enough mature node production to build any end devices which requires far more than just the one most expensive chip.
Just like every other industry from steel to solar to EV to batteries, US only really have two choices: to accept Chinese control of all semiconductors through both SMIC and TSMC and accept its own reliance on China made chips, or not accept Chinese control and lose access to everything.
You must be a CCP plant. 1) If you can Google, you will see that TSMC is going to build 2 and 1 nm in Arizona, 2) China can't do anything below 7 nm because the USA has restricted the sale of key equipment from ASML and Applied Materials to do this -- hence China is F'd, 3) A $2B packaging plant is being built down the road from TSMC to package the chips made at these fabs.
You do realize SMIC is a joke? Making chips for toasters and dishwashers is all SMIC is going to be able to do given the sanctions the USA has placed on China
TEMPE, Ariz.--(BUSINESS WIRE)--Nov. 30, 2023-- Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, has announced its plan to build an advanced packaging and test facility in Peoria, Arizona. By the time of full project completion, Amkor projects to invest approximately $2 billion and employ approximately 2,000 people at the new facility.
Amkor worked closely with Apple on the strategic vision and initial manufacturing capability of the Peoria facility, which will package and test chips produced for Apple at the nearby TSMC fab. When the new facility opens, Apple will be its first and largest customer.
Amkor first established its presence in the Greater Phoenix area in 1984 and is excited to expand its footprint in the evolving Arizona semiconductor industry. The new manufacturing location will uniquely position Amkor among a strong ecosystem of front-end fabs, IDMs, and suppliers with current or expanding presence in the area, including TSMC, Intel, Applied Materials, ASML and others.
TSMC🤔 should move some of these facilities to #Canada🇨🇦 and Mexico;😌 which would make it cheaper for USA🇺🇸 and the world economy😌... 🌎💘💰
🔥🔥
Tmsc set up shop in america. But its not functioning smoothly cause cant find good american engineers.
Not true - Fab 1 is now running with 2,200 employees.
😂 wow US found finally Taiwan is close to China
All these years, money, resources, and no US company can compete with TSMC?
Good morning 🌞
China doesn’t care about Taiwan’s Chip. The reunification is pure about history and nationalism.
China is already developing their own school of chip manufacturing. China is almost dominating the manufacturing of higher chip nodes, this kind of chip is most used. It means where the money and scale is. The higher nodes chip is used in EV, weapons and electronics in daily life. Manufacturing chips is a very high investment. If the US manages to manufacture chips domestically but can’t sell to China since China is already capable of manufacturing then the investment will not pay back.
Manufacturing chips doesn’t create a lot of jobs despite high investment. And those jobs will just be filled by Taiwanese engineers. It’s a painful, long hour and a high demanding job.
If anything China would welcome destuction of the factories, as it would cut the supply worldwide leaving the world unable to produce newest chips in any meaningful amount for several years - all while Chinese would be able to catch up in chip production.
Slava TSMC 🇹🇼 Heroyam TAIWANese 🦾