Why are we so dependent on Taiwan for microchips? Why couldn’t these be manufactured elsewhere, in addition to Taiwan?
In: 1601
This is either a subtle or obvious or recursive answer, but … TSMC is the leader in state-of-the-art semiconductor fabrication because they run the highest volume of wafer starts, more than anyone else. And because they run more wafers, they can offer the highest quality at the best price. And because of their highest quality at the best price … they’ll continue running more wafers than anyone else, using that money to invest in state-of-the-art improvements … and the cycle repeats.
As for how they came to own this volume/quality/technology cycle … Intel of course used to be the best, because of x86 PC and laptops, and Intel’s relentless “tick-tock” model that no one else could keep up with. But then PCs stopped being essential, and Intel lost to ARM in mobile. TSMC won most of that business (including the iPhone). Samsung is another close second to TSMC because of their being one of the largest electronic OEM consumers of ICs, plus their best-in-class manufacturing DRAM and NAND memory wafers (which TSMC does not manufacture).
Latest Answers