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Apple is fighting for TSMC capacity as Nvidia takes center stage

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Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#81
post #35

Earlier quoted context omitted.

I feel like China invading Taiwan isn't happening in our lifetimes. Yes, they stand to benefit from it, but I doubt any of the people in charge of decision making are that interested in rocking the boat. There's nobody forcing their hand and the country is doing great without needing to invade anyone.

Let's hope China doesn't get a leader like Donald Trump in our lifetimes, then I think your prediction will apply. Despite the political tensions, China and Taiwan are so deeply integrated economically that an invasion would hurt not only Taiwan and the global economy, but also China (directly and indirectly). The EU and the US are making efforts to re-shore some semiconductor manufacturing, but TSMC and others will…

It seems that their leaders are and have been planning to take over Taiwan for decades. At least according to most of what I’ve read on the topic from all the various sources.

If or when China’s economic and/or demographics issues become problematic is exactly when the CCP likely would want to strike. At least seems to me like it’d be a good time to foment national pride.

Of course hopefully I’m wrong and you’re right.

Many of these larger geopolitical things are decades in the making. Even Trump’s Venezuela action has been a long time brewing. So much so that “US troops in Venezuela” has become a trope in military sci-fi. The primary change with Trump is how he presents and/or justifies it, or rather doesn’t.

Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#82

Sneak preview of the TSMC shortage that will sweep the world in 2027 when China takes Taiwan and the TSMC scuttles their chip fabs on the island. I don’t know the hedge to position against this but I’m pretty sure China will make good on its promise.

Alternatively, China could make progress fabricating and exporting its own chips and designing its own GPUs. The entire chip sector could go the way of solar panels and EVs with prices dropping and margins collapsing to near zero.

Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#83

Earlier quoted context omitted.

ASML...

Without San Diego based Cymer they can't move forward on their latest and greatest. As far as I know they still do R&D in San Diego even after purchase.

xLight is coming up quickly... https://www.xlight.com/

Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#85
post #19

Explains why Apple is looking to diversify their fabs with Intel. If Intel can stay on their current trajectory and become a legitimate alternative they will do very well as a fab with additional available capacity.

Maybe I missed something but aren't Intel looking to wind down some of their production ?

Not that I've heard. I searched and I see nothing. Where has Intel said they are winding down chip fabrication?

Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#86

Earlier quoted context omitted.

Isn’t the smaller die aspect more valuable early in the node’s maturity, where defects are less punishing?

That is the traditional textbook yield curve logic, if I'm not wrong? Smaller area = higher probability of a surviving die on a dirty wafer. But I wonder if the sheer margin on AI silicon basically breaks that rule? If Nvidia can sell a reticle-sized package for 25k-30k USD, they might be perfectly happy paying for a wafer that only yields 30-40% good dies. Apple OTOH operates at consumer electronics price points. Th…

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Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#87
post #64
post #61

I'm surprised that Apple is not considering opening up its own fabs. Tim Cook is all about vertical-integration and they have a mountain of cash that they could use to fund the initial startup capex.

Semiconductor manufacturing is not an incremental step for Apple. It's an entirely new kind of vertical. They do not have the resources to do this. If they could they would have by now.

Designing CPUs also wasn't their core business and they did it anyway. Apple probably won't care that much about price hikes but if they ever feel TSMC can't guarantee steady supply then all bets are off.

I wonder what will happen in future when we get closer to the physical "wall". Will it allow other fabs to catch up or the opposite will happen, and even small improvements will be values by customers?

Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#88

Legit question - what is the current status of the construction of chip production factories in the US? I know about the existence of the initiative but I don't know how it is progressing / what is actually going on on that front.

The projects seem to go well and then union bosses threaten to shut the whole thing down.

Then the essential skilled personnel can’t come train people because the visa process was created by and is operated by the equivalent of four year olds with learning disabilities. Sometimes companies say fuck it we’re doing it anyway and then ice raids their facility and shuts it down.

I’d post the news articles about th above, but your googling thumbs work as well as mine.

Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#89
post #32
post #18

Tim Cook failing on the Cook doctrine ("We believe that we need to own and control the primary technologies behind the products that we make") is ironic.

Owning a leading edge fab is not practical for most companies, even huge some ones like Apple. Intel has even struggled with it since they traditionally didn’t sell capacity to other buyers. It worked for Intel because they traditionally had a near-monopoly over the laptop, desktop, and server chip market. Apple certainly has the money to spin up their own chip fabricator, but there’s no guarantee it would be as good…

Apple already is in the process of moving "most" chip production to Texas Instruments in Sherman, TX.

https://appleinsider.com/articles/25/08/22/apple-chips-to-be...

Re: Apple is fighting for TSMC capacity as Nvidia takes center stage

#90
This piece provides a fair bit of insight:

> Apple-TSMC: The Partnership That Built Modern Semiconductors

In 2013, TSMC made a $10 billion bet on a single customer. Morris Chang committed to building 20nm capacity with uncertain economics on the promise that Apple would fill those fabs. “I bet the company, but I didn’t think I would lose,” Chang later said. He was right. Apple’s A8 chip launched in 2014, and TSMC never looked back.

https://newsletter.semianalysis.com/p/apple-tsmc-the-partner...

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