News Intel CEO Revisits TSMC to Secure Extra Production Capacity

[Admin]

It wasn't all about securing production from TSMC's latest nodes, says local media. For example, Intel is in dire need of more mature node LAN chips for its servers, indicates reports.

Intel CEO Revisits TSMC to Secure Extra Production Capacity : Read more

 

[watzupken]

It’s ironic that amidst all the news that Intel is very aggressively expanding their fabs business, the CEO had to go down personally to TSMC in bid to secure more allocations. While it is true that the fabs don’t get ready overnight, but in reality, I feel a lot of these expansion plans will be in jeopardy for a longer time because of supply limitations with equipments, raw materials and manpower.

 

[jkflipflop98]

This is a very interesting situation we have here.

We have multiple companies completely 100% reliant on TSMC to produce anything. Let's just say a competitor with deep pockets were to enter the race and outbid the other customers for all the leading-edge node wafer starts. You could effectively pay to freeze out the competition. Then you end up with Apple and Intel with all of TSMC's starts and AMD sitting on the outside wishing they made friends with Samsung.

 

[alceryes]

This is a very interesting situation we have here.

We have multiple companies completely 100% reliant on TSMC to produce anything. Let's just say a competitor with deep pockets were to enter the race and outbid the other customers for all the leading-edge node wafer starts. You could effectively pay to freeze out the competition. Then you end up with Apple and Intel with all of TSMC's starts and AMD sitting on the outside wishing they made friends with Samsung.

Wondering if Taiwan has any anti-trust laws to prevent this from happening.

 

[Co BIY]

This is a very interesting situation we have here.

We have multiple companies completely 100% reliant on TSMC to produce anything. Let's just say a competitor with deep pockets were to enter the race and outbid the other customers for all the leading-edge node wafer starts. You could effectively pay to freeze out the competition. Then you end up with Apple and Intel with all of TSMC's starts and AMD sitting on the outside wishing they made friends with Samsung.

While some competitors would be cut out for a while TSMC has been growing capacity at such a rate that it would not be a sustainable plan.

Every price rise at TSMC makes Intel's own competitive fabs more valuable and fuels TSMCs growth.

Apple/Google could probably start a Fab team and be up and running in few years. Just the announcement and threat could defeat the abusive behavior.

Wondering if Taiwan has any anti-trust laws to prevent this from happening.

Not just Taiwan but dozens of countries would be able to take action on an abuse like this. But if Intel has legitimate business needs for 20% of TSMCs current production (not unimaginable with new GPUs and global growth) then it's not really actionable.

Lower margin products (low end CPU) just won't get made.

We need some articles about ASML. Why are they not able to meet demand for their products ?

 

[Arbie]

Mad in Taiwan.