South Korea and Taiwan elbow out USA,China in chip investment

[Ryzen_renoir]

U.S. tech titan Intel has announced plans to spend $20 billion by 2024 to build two new chipmaking facilities in Arizona, but even if it manages to fend off China's growing influence on the global supply chain, it still faces the might of South Korea's Samsung Electronics and Taiwan Semiconductor Manufacturing Co.

A research report by IC Insights on the industry published in March suggests that that Intel figure is nowhere near enough to take on these Asian giants. "Governments would need to spend at least $30 billion per year for a minimum of five years to have any reasonable chance of success," the report said, referring to the minimum expenditure needed by the U.S., China and the EU to develop chipmakers that are comparable to Samsung and TSMC in terms of production technology and capacity.

Yet, chipmakers other than Samsung and TSMC have remained cautious about capital investment due to soaring costs of building factories.

According to IC Insights, Samsung has remained the world's biggest spender since 2010. Intel is barely catching up with second-ranked TSMC. Together, Samsung and TSMC are expected to be responsible for 43% of the global total capital expenditure this year.

Samsung and TSMC have dominated the global chipmaking industry over the last two decades. The recent automotive chip crunch is one of the negative effects of an oligopoly. While Intel's big investment is prompted by U.S.-China rivalry, its strategy must also be to close the gap with the top two companies.

Even for China, IC Insights' estimation of "$30 billion per year for a minimum of five years" is an ambitious goal. China's public and private sectors have made concerted efforts to beef up the country's chipmaking industry since 2014, but domestic chipmakers' capital expenditure between 2017 and 2020 only amounted to $44.7 billion. Over the same period, Samsung alone has invested nearly twice that amount.

"It's economically unrealistic for all the countries to build additional chip production capacity," TSMC Chairman Mark Liu said on Tuesday.

Funding is not the only hurdle. "To bring a full supply chain back and try to be fully self-reliant is totally not efficient. ... At the end of the day, that additional capacity could become nonprofitable capacity," Liu said, ringing alarm bells.

The IC Insights report said: "For China, even if the money were available, they (chipmakers) would certainly be hindered by trade issues prohibiting some of the most critical pieces of process equipment from being sold into the country." For the EU, the report does not even reveal any path to gaining any competitive edge in the chip foundry business.

The report also does not mention Japan, as IC Insights probably does not see the country as a major player. The Ministry of Economy, Trade and Industry has vowed to attract overseas chipmakers' factories to make advanced semiconductors in the country, but such efforts are unlikely to yield results.

 

 

[futureofandhra]

1 minute ago, Ryzen_renoir said:

U.S. tech titan Intel has announced plans to spend $20 billion by 2024 to build two new chipmaking facilities in Arizona, but even if it manages to fend off China's growing influence on the global supply chain, it still faces the might of South Korea's Samsung Electronics and Taiwan Semiconductor Manufacturing Co.

A research report by IC Insights on the industry published in March suggests that that Intel figure is nowhere near enough to take on these Asian giants. "Governments would need to spend at least $30 billion per year for a minimum of five years to have any reasonable chance of success," the report said, referring to the minimum expenditure needed by the U.S., China and the EU to develop chipmakers that are comparable to Samsung and TSMC in terms of production technology and capacity.

Yet, chipmakers other than Samsung and TSMC have remained cautious about capital investment due to soaring costs of building factories.

According to IC Insights, Samsung has remained the world's biggest spender since 2010. Intel is barely catching up with second-ranked TSMC. Together, Samsung and TSMC are expected to be responsible for 43% of the global total capital expenditure this year.

Samsung and TSMC have dominated the global chipmaking industry over the last two decades. The recent automotive chip crunch is one of the negative effects of an oligopoly. While Intel's big investment is prompted by U.S.-China rivalry, its strategy must also be to close the gap with the top two companies.

Even for China, IC Insights' estimation of "$30 billion per year for a minimum of five years" is an ambitious goal. China's public and private sectors have made concerted efforts to beef up the country's chipmaking industry since 2014, but domestic chipmakers' capital expenditure between 2017 and 2020 only amounted to $44.7 billion. Over the same period, Samsung alone has invested nearly twice that amount.

"It's economically unrealistic for all the countries to build additional chip production capacity," TSMC Chairman Mark Liu said on Tuesday.

Funding is not the only hurdle. "To bring a full supply chain back and try to be fully self-reliant is totally not efficient. ... At the end of the day, that additional capacity could become nonprofitable capacity," Liu said, ringing alarm bells.

The IC Insights report said: "For China, even if the money were available, they (chipmakers) would certainly be hindered by trade issues prohibiting some of the most critical pieces of process equipment from being sold into the country." For the EU, the report does not even reveal any path to gaining any competitive edge in the chip foundry business.

The report also does not mention Japan, as IC Insights probably does not see the country as a major player. The Ministry of Economy, Trade and Industry has vowed to attract overseas chipmakers' factories to make advanced semiconductors in the country, but such efforts are unlikely to yield results.

 

 

india nill

decades lost 

[Ryzen_renoir]

5 minutes ago, futureofandhra said:

india nill

decades lost 

Dacoit  leaders amma odi , pasupu kumkuma ani free ga panchipetta daanikey dabbulu levu inka , research , investment ki ekkadi nunchi vastayi ? 

India is and always will be a place to produce cheap stuff and services . The sooner indian public realise that the better off the country will be 

Pretending to be in the same league as modern countries comes off as pathetic 

[futureofandhra]

10 minutes ago, Ryzen_renoir said:

Dacoit  leaders amma odi , pasupu kumkuma ani free ga panchipetta daanikey dabbulu levu inka , research , investment ki ekkadi nunchi vastayi ? 

India is and always will be a place to produce cheap stuff and services . The sooner indian public realise that the better off the country will be 

Pretending to be in the same league as modern countries comes off as pathetic 

freebies ki kia type investment ki difference vundi

singapore has more semiconductor stuff than india

worst ley andharu muncharu

pbm is consumers are there its burden no way to stand in competition its hardware not software

[Ryzen_renoir]

6 minutes ago, futureofandhra said:

freebies ki kia type investment ki difference vundi

singapore has more semiconductor stuff than india

worst ley andharu muncharu

pbm is consumers are there its burden no way to stand in competition its hardware not software

oka assembling plant ki semi conductor fabs ki link peduthunava ? 

Basic technology leni Desam lo high tech stuff ekkada nunchi vasthadhi ? India has to start working on its basics before even thinking of such high tech industry

 

[futureofandhra]

9 minutes ago, Ryzen_renoir said:

oka assembling plant ki semi conductor fabs ki link peduthunava ? 

Basic technology leni Desam lo high tech stuff ekkada nunchi vasthadhi ? India has to start working on its basics before even thinking of such high tech industry

 

semi conductor fabs  come under manufacturing too with clean room technology

vietnam malaysia has more semiconductor related stuff

2021 still basics kabattey decades lagging 

they need to wake up

[Ryzen_renoir]

2 minutes ago, futureofandhra said:

semi conductor fabs  come under manufacturing too with clean room technology

vietnam malaysia has more semiconductor related stuff

2021 still basics kabattey decades lagging 

they need to wake up

You have like zero knowledge on industry . 

Vietnam and Malaysia has zero knowledge on the fab . Vietnam is trying to lure in foreign manufacturers but so far has failed to make any headway . 

Asalu india lo software research kooda ledhu even though we have hundreds of billions in revenue . 

WITCH companies spend pittance on R&D , they are too busy giving away dividends .antha sweat shop model. 

Even govt doesn't spend , india should follow bangladesh model of cheap manufacturing first before even thinking of high tech stuff . 

[futureofandhra]

3 minutes ago, Ryzen_renoir said:

You have like zero knowledge on industry . 

Vietnam and Malaysia has zero knowledge on the fab . Vietnam is trying to lure in foreign manufacturers but so far has failed to make any headway . 

Asalu india lo software research kooda ledhu even though we have hundreds of billions in revenue . 

WITCH companies spend pittance on R&D , they are too busy giving away dividends .antha sweat shop model. 

Even govt doesn't spend , india should follow bangladesh model of cheap manufacturing first before even thinking of high tech stuff . 

lol worked as control systems engineer for intel and i wonot comment on your knowledge as i do not know 

i have only said malaysia n vietnam has more semiconductor stuff not sure why you took it to fab

SilTerra Wafer Fabrication malaysia

and intel invested a lot in vietnam for their semiconductor testing facilities i know it because i am one of the engineer's for those huge robo

india atleast can easily try r&d in software as it has some strength

manufacturing side india does have some potential not like nothing problem is semiconductor manufacturing is different technology

problem is the technology of semiconductor industry 

already there are many cheap manufacturing things in india 

 

[AndhraneedSCS]

3 hours ago, Ryzen_renoir said:

Dacoit  leaders amma odi , pasupu kumkuma ani free ga panchipetta daanikey dabbulu levu inka , research , investment ki ekkadi nunchi vastayi ? 

India is and always will be a place to produce cheap stuff and services . The sooner indian public realise that the better off the country will be 

Pretending to be in the same league as modern countries comes off as pathetic 

Semi Conductor Manufacturing ekkada unte emiti? Amma Odi, Pasupu Kumkuma tho votes vastayi