111–120 of 149 posts
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That theory fails to account for Japan's failed semiconductor industry.
No it doesn't, because Japanese companies aren't Korean, Chinese, or Taiwanese.
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A bit of an aside, but your comment made me realize how much we don’t know about the process used to create the technologies that underpin our civilization. We (laymen) have no idea about the incredible complexity behind manufacturing a single CPU chip.
Many years ago I sat next to the CTO of Broadcom on a plane. We struck up a conversation and when I learned he worked for a chip designer I asked the question that I assumed was the most difficult part. I asked how the engineers laid out the circuits physically on the chip. He laughed and told me the engineers write software that defines the parameters and functions and the software lays out the chip (I know I am ove…
Earlier quoted context omitted.
A bit of an aside, but your comment made me realize how much we don’t know about the process used to create the technologies that underpin our civilization. We (laymen) have no idea about the incredible complexity behind manufacturing a single CPU chip.
Many years ago I sat next to the CTO of Broadcom on a plane. We struck up a conversation and when I learned he worked for a chip designer I asked the question that I assumed was the most difficult part. I asked how the engineers laid out the circuits physically on the chip. He laughed and told me the engineers write software that defines the parameters and functions and the software lays out the chip (I know I am ove…
Semiconductor industry has the deepest and most complex value chain in the economy. TSMC has always been pure fab company and it pays off now. Samsung and Intel are also in chip design business and do other things. They are less focused. TSMC's lead is not guaranteed. Any new technology node can fail and remove them from competition if they make wrong choices. I'm not exaggerating when I say that designing a new tech…
>I'm not exaggerating when I say that designing a new technology node for mass production is like a moon program. It's insane. I had a friend tell me about what goes on in these asml machines. Essentially the targeting system that moves the wafer around cannot have any vibration so I kid you not the platform is floating and controlled by magnets. And this is just the etching machine.
The short answer is during a time of massive profits of semi companies, most cashed out. One (TSMC) has kept reinvesting gains into R&D for the last 20 years. Lithography via ASML is the cutting edge advance, but there are many other small details too. Both in the technology itself but also in the complexity of integrating that technology to work together in one process.
I think that one of the greatest advantages that Korean, Chinese, and Taiwanese companies have is that most of them seem to be somewhat immune to Harvard Business School ideas, and Jack Welch was never worshipped as he was in the West. Keeping the bean counters under leash is good for building long-term value.
Taiwan has invested in it like it was it's military. And it worked, they got to the point that the US would defend them from a Chinese invention.