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TSMC eyes Germany as possible location for first Europe chip plant

asia.nikkei.com

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Re: TSMC eyes Germany as possible location for first Europe chip plant

#241

This is a good move for TSMC. A lot of action happens through ASML ( Netherlands) and IMEC ( Belgium). Germany is relatively close to both.

Why would the locations of those research organizations matter?

Because while TSMC is production, the innovation happens mostly with those companies.

Re: TSMC eyes Germany as possible location for first Europe chip plant

#242

Earlier quoted context omitted.

Why you think that Germany has a lot of good and cheap engineers? I think the biggest problem that low salaries are causing there is that people with some(5+ years) experience are moving either to Switzerland/US or to freelance for Switzerland/US companies. So, there's big deficit of experienced engineers. German companies are trying to solve it by inviting Eastern European/Indian/Asian workers, that are cheaper, but…

That's funny because a lot of experienced engineers move to Germany from France, Spain, Italy, the UK, etc to get better salaries. Engineering salaries in Germany are high compared to most of western Europe.

They are low compared to the world. However moving is NOT easy for personal reason. If you are going to move from the countries you listed Germany is going to be easier just because it isn't as hard to get back to visit family.

Re: TSMC eyes Germany as possible location for first Europe chip plant

#243

Earlier quoted context omitted.

As I said, the union has enough benefits that the value of higher salary positions isn't worth it to many. In the union you are not allowed to work more than 36 hours a week (I might have the numbers off a bit?) and they check to ensure that. Non-union can work longer hours, in practice they don't, but they are allowed to. There are a number of other things like that, the one lead engineer I work with in Germany does…

What's "the union"? I never heard about it. Not a single engineer that i know personally is in this union(or at least they are hiding that). And literally all of them planning to leave Germany once the good opportunity arrives. Also, i know personally almost 20 engineers who left the country only for better pay and that's during pandemic only.

Many German companies (BMW, Siemens, Bosch, BASF, ...) historically cooperate with unions like "IG Metall". Unions win benefits for their members, but companies usually pass these benefits on to all employees. These benefits typically include: 35-hour work week, regular and performance-independent salary increases for all employees, at least 6 weeks of vacation per year, parental leave beyond the legal minimum, training and job placement if your current job is eliminated, etc. If you are a developer working for one of these companies, the union contracts will always affect you, even if you are not a union member.

It is hard to tell if you are in a better or worse situation as a developer when you work in such a company. Many employees in such companies would like to have a 40-hour week, because that would result in higher pay. Unions, however, push to allow 40-hour weeks only to a small percentage of the workforce on the grounds that if the workload is higher, it should be compensated by new hires instead of overtime for existing employees, since more employees also means more union members and thus more power for unions.

Re: TSMC eyes Germany as possible location for first Europe chip plant

#244
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post #98

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> after everybody is seeing what Germany is doing to Tesla's Gigafactory there Yeah, the Walmart said the same in the 90s when they tried to concur Germany, only to miserably fail. The thing is that the Germany (and the EU as a whole) is no Wild West and there are actually rules, environmental responsibility and labor laws to follow.

I am pretty sure the other reailers in Germany like Aldi and Lidl teamed up to prevent Walmart from getting a foothold. They are extremely strong and this for a reason. I went to Walmart in Jena when they opened their shop there and was really underwhelmed by what they had to offer.

Aldi and Lidl are even expanding their foothold in the US I think, so they are probably quite competitive

Re: TSMC eyes Germany as possible location for first Europe chip plant

#245
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post #102

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There aren't any competitors in the state, and there has been basically no politically influential pushback, so that line of argument doesn't really make sense.

There is no overt pushback. That doesn't mean that there is none. And the presence and activity of the usual environmental NIMBY organisations like Deutsche Umwelthilfe, NABU, BUND, etc. point to at least some covert opposition, since those organisations happily serve as fronts for non-environmental interests. And state politics, especially in the east, is rife with people using it as a stepping stone to the federal…

Wait, got any source to back up the claim that those environmental organizations are corrupt fronts for business interests?

Re: TSMC eyes Germany as possible location for first Europe chip plant

#246

Earlier quoted context omitted.

Germany is a great place to invest. So is most of Western Europe. The #1 thing you are looking for is _stability_ and a good engineering job market. Both is available. For this kind of automated high-tech manufacturing, nobody cares about salaries. They are <<1% of the cost.

Is Germany really stable considering Tesla story ? Chip making isn't clean by any standard.

The Tesla story is widely exaggerated. So far they have gotten basically every approval they asked for quite quickly. Local politics is quite supportive of the project, because it brings a lot of jobs in an industrial-weak region. It is also not clear that the project has actually suffered any significant delays beyond some of the time plans being overly optimistic. There has been some attempts to block this project from some environmental groups and some groups posing as environmental, but their their injunctions have been quickly cast away by the courts. It is also not clear to which extend Tesla changing their plans in flight have created some delays. As the system works, some of the plan changes do reset the approval process to some extend.

While the original plan seemed to aim for starting production without a local battery plant this summer, there is no sign of starting production yet. On the other side, they already started to build a giant concrete foundation for what looks like a battery plant, this might come much earlier as initially planned. And this proceeds, like most other parts of the factory, at a very quick speed.

Germany has strict environmental regulations, but most places in the world have those by now. As long as you plan to fulfill the regulations, there should be no reason not to build in Germany.

Re: TSMC eyes Germany as possible location for first Europe chip plant

#247
post #239
post #97

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Top technical talent scarcity and cost. In Silicon Valley, you can find a dozen 600k$ engineers relatively quickly to scale up a random startup. In Germany... the salaries these people would be making would be This disparity in the valuation of top engineers cause many to emigrate, and once you are in the US, it is impossible to financially justify taking a 5x pay cut to go back to Germany. (You can justify it "non-f…

If you would offer $600k for an engineering position, there would be no problem finding any numbers of engineers in Germany. They all would have to line up behind me of course :). Yes, to quickly ramp up, you would have to pay more than teh average market salary, but as you pointed out, engineering positions are not as highly paid in Germany as in the silicon valley. There is nothing preventing you from paying good s…

> If you would offer $600k for an engineering position, there would be no problem finding any numbers of engineers in Germany.

I'm baffled at some of the answers.

Paying somebody 600k$ does not make that person a good engineer.

You could pick an undergrad, offer them 600k$, and they could take the job, but that won't make them top talent.

No company out there paying their engineers 600k$ is going to give an engineer 600k$ if they are not worth each $ of those 600k$.

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It's not about finding engineers that are willing to have a 600k$ salary (who wouldn't if someone offers it to you?), but about attracting the best of the best engineers of a particular field, many of which already do have that salary. Why should they move to Germany?

Re: TSMC eyes Germany as possible location for first Europe chip plant

#248
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post #27

Earlier quoted context omitted.

Not to mention the people who design many of the machines that TSMC use in their plants: ASML. "The mirrors guiding this light, made of sandwiched layers of silicon and molybdenum, are ground so precisely that, if scaled to the size of Germany, they would have no bumps bigger than a millimetre" https://www.economist.com/business/2020/02/29/how-asml-becam... >

Extremely naive question, but I always wonder how you can "bootstrap" this kind of precision — intuitively for something to be this precise, the tools and equipment that "create" it should also have to be more or less equally precise. Or is it a matter of manufacturing it, testing it, and rejecting some percentage of things that don't fit your requirements due to imprecisions? Are there any good background resources…

On a related note, there's the powerful technique of doing things in a way where the factor(s) that are difficult to measure or control cancel out.

Examples of this is the device[1] used for the redefined kilogram[2], LIGO[3] and many others.

[1]: https://www.nist.gov/si-redefinition/kilogram-kibble-balance

[2]: https://en.wikipedia.org/wiki/2019_redefinition_of_the_SI_ba...

[3]: https://www.ligo.caltech.edu/LA/page/faq (first question)

Re: TSMC eyes Germany as possible location for first Europe chip plant

#249

Earlier quoted context omitted.

Dial down your tone - it is unwarranted. Rules and red tape was exactly my point. Why would TSMC choose to run that gauntlet willingly and potentially fall foul of the same hurdles that Tesla has encountered? One of the big problems Tesla had was around water supply. Do you have any idea how much water a chip fab uses? My point around export restrictions was in reference to the EU blocking vaccine exports this year b…

> My point around export restrictions was in reference to the EU blocking vaccine exports this year because it suited them. LMAO The EU blocks ONE vaccine shipment - while the UK and the US had export bans in place for months and now the EU is the bad guy. smh

The UK did NOT have vaccine export bans in place. Why is this a recurring meme on HN?

Or, more pointedly - why are some people so eager to gleefully regurgitate such misinformation?

Re: TSMC eyes Germany as possible location for first Europe chip plant

#250

Earlier quoted context omitted.

ha! I guess you haven't worked as a designer or verification engineer, designing chips then? let me tell you: you work with a commitee-designed c++ like abomination language with 300 non-composible keywords that make no freaking sense. all of that crap grew from legacy-upon-legacy of crutches as an attempt to fix the goddamn broken-by-design verilog. Ultimately, this craplanguage + library that is 90% non-debuggable…

Hmmm, isn't there people pushing for better standards, language, tools?

https://clash-lang.org/ http://www.clifford.at/yosys/

I am hoping we can start proving many if the things they brute-force model check today, too.

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