I think it's kind of strange that TSMC is taking Intel's business at all. TSMC in no way *needs* Intel's business -- they can definitely keep their fabs fully utilized with Apple, AMD, and many others. Sure, Intel might be willing to pay a premium, but TSMC knows full well that Intel intends to compete in the foundry business. Any profit Intel makes from selling TSMC fabbed chips will likely go into funding Intel's efforts to compete with TSMC. So why do anything that helps Intel?
If this proves to be true, it is concerning that Intel is apparently ceding leadership in fabrication technologies, which I think is a huge mistake and puts their long-term survival at risk. I have to believe that CPU, GPU, and general SOC architecture and fabrication technologies are going to be ever more closely intertwined with each other where one is seeking the highest performance.
Although it’s clear that you can be a silicon design house and farm out fabrication to an outside firm, it’s been done for decades and will continue to be, Intel needs to be a leader in both silicon design and fabrication. Apple is not vulnerable in the same way since Apple has no intention of selling its designs to anyone else. Not so with Intel. Intel needs to invest heavily in next gen fabrication R&D like their life blood depends on it, because it does.
It’s clear that Intel has a long way to go to make quantum computing practical. This needs to be Intel’s Manhattan Project. And they should invest in it accordingly.
Apple has been using TSMC to produce their Apple Silicon chips for the better part of a decade. They help finance development of new cutting edge nodes, and have been a critical partner in TSMC's advancement and evolution into the world's best (and possibly largest) fab.
At first, TSMC was reluctant to take on Apple's business because they didn't want to put so many of their eggs into such a large basket, but eventually the two got together and have been working with each other ever since. Apple likes doing business with TSMC because they not a competitor, and their IP won't accidentally leak into some other subdivision's competing products.
Now, along comes this new Johnny-Come-Lately with a fist full of dollars and wants you to produce their CPUs while they're upgrading their own fab to more modern standards.
Do you go with with Intel for the fast cash grab, of stick with the partner who's been working with you all this time?
Of course, when Intel gets their own fabs up to snuff, you know you'll suffer the double whammy of losing not only the business of fabricating Intel CPUs, but Intel will then try to take as many of your other customers as they can.
What's a body to do ... ?
When the enemy tries to misdirect you smile and show them the door (The Art of War)….
I think it's kind of strange that TSMC is taking Intel's business at all. TSMC in no way *needs* Intel's business -- they can definitely keep their fabs fully utilized with Apple, AMD, and many others. Sure, Intel might be willing to pay a premium, but TSMC knows full well that Intel intends to compete in the foundry business. Any profit Intel makes from selling TSMC fabbed chips will likely go into funding Intel's efforts to compete with TSMC. So why do anything that helps Intel?
We will see if TSMC thinks like a greedy short term thinking western company, there is no long range benefit to service the enemy Intel….Stupid if they do.
Apple has been using TSMC to produce their Apple Silicon chips for the better part of a decade. They help finance development of new cutting edge nodes, and have been a critical partner in TSMC's advancement and evolution into the world's best (and possibly largest) fab.
At first, TSMC was reluctant to take on Apple's business because they didn't want to put so many of their eggs into such a large basket, but eventually the two got together and have been working with each other ever since. Apple likes doing business with TSMC because they not a competitor, and their IP won't accidentally leak into some other subdivision's competing products.
Now, along comes this new Johnny-Come-Lately with a fist full of dollars and wants you to produce their CPUs while they're upgrading their own fab to more modern standards.
Do you go with with Intel for the fast cash grab, of stick with the partner who's been working with you all this time?
Of course, when Intel gets their own fabs up to snuff, you know you'll suffer the double whammy of losing not only the business of fabricating Intel CPUs, but Intel will then try to take as many of your other customers as they can.
What's a body to do ... ?
Intel will take more than customers, they will also poach potential employees.
So what does this say about the supposedly superior tech IP and innovation of the U.S.? It seems as if we are growing more dependent on Chinese technical prowess every day. Combine that with our lack of rare earth metals (or I should say, our shut down of rare earth mining by environmentalists) and we wind up totally dependent on the Chinese for our daily living. That’s quite some leverage China has over the U.S. if they decide to invade Taiwan. Our only response will be outraged yammering and weak sanctions. Meanwhile China can cut the U.S. off at the knees by simply stopping the export of their manufacturing and technology and letting Americans twist in the wind, impotent to do anything about it.
The sad part is we did this to ourselves. Now we’re left with “better red than dead” option, which would be just fine with @GeorgeBMac.
So what does this say about the supposedly superior tech IP and innovation of the U.S.? It seems as if we are growing more dependent on Chinese technical prowess every day. Combine that with our lack of rare earth metals (or I should say, our shut down of rare earth mining by environmentalists) and we wind up totally dependent on the Chinese for our daily living. That’s quite some leverage China has over the U.S. if they decide to invade Taiwan. Our only response will be outraged yammering and weak sanctions. Meanwhile China can cut the U.S. off at the knees by simply stopping the export of their manufacturing and technology and letting Americans twist in the wind, impotent to do anything about it.
The sad part is we did this to ourselves. Now we’re left with “better red than dead” option, which would be just fine with @GeorgeBMac.
All are China haters propaganda with zero substance.
Comments
Although it’s clear that you can be a silicon design house and farm out fabrication to an outside firm, it’s been done for decades and will continue to be, Intel needs to be a leader in both silicon design and fabrication. Apple is not vulnerable in the same way since Apple has no intention of selling its designs to anyone else. Not so with Intel. Intel needs to invest heavily in next gen fabrication R&D like their life blood depends on it, because it does.
If Apple and Intel get into a gunfight over TSMC capacity, Intel will lose. Intel will run out of cash before Apple.
Intel is crawling to TSMC on their hands and knees begging "Uh, don't forget us, 'kay? Pretty please?"
Maybe not quite that dramatic but that's essentially why Intel isn't doesn't want to go to war with Apple over this.
The sad part is we did this to ourselves. Now we’re left with “better red than dead” option, which would be just fine with @GeorgeBMac.