While half the world looks for an alternative to Taiwan, Jensen Huang is very clear about the harsh reality: there is no
In the technological world, the United States AIthe China’s semiconductor breakthroughs and the robotics explosion They were protagonists during the last months. But if there is something essential for these industries to function, it is Taiwan. In semiconductors, Taiwan is the one who splits the cod, and its technological diamond is TSMC. And the CEO of NVIDIA is clear that it is not worth burning money looking for the new TSMC immediately. Because it’s something that will take decades to replicate. Resilience. TSMC is about to turn 40 years old and is the company that manufactures for the elephants of the semiconductor sector such as AMD, Apple, ARM, MediaTek, Qualcomm or NVIDIA itself, among many others. They are the ones that have the most advanced machines of the European ASMLthose that have refined their processes to the extreme and are used even by manufacturers that have their own factories, such as Intel or Texas Instruments. It is something that affects the user directly, proof of this is that a mobile chip manufactured by TSMC is not the same as almost the same one made by Samsung. And to these processes is added a brutal manufacturing capacity that has dominated the industry. And, of course, looking to bite into that pie, different countries have tried to find their own TSMC. However, Jensen Huang, CEO of NVIDIA, has commented that efforts to diversify production must be made from the angle of resilience, not replacement. You don’t have to burn money like crazy. In recent months, Europe and the United States have begun to add manufacturing capacity in the semiconductor segment. The problem is that you cannot build a competitive industry in a short time: experience is needed and failure is not allowed. That, in an industry that is evolving at a very rapid pace due to the needs for chips for feed the artificial intelligenceis not contemplated. That is why Huang believes that the market is becoming selective and if guarantees are needed to manufacture chips, the one who gives those guarantees is turned to. Huang has been giving interviews for a few days and touching on key topics. For example, pointing out that The breakup between the US and China makes no sense because China is a very powerful trading partner, but also ensuring that Taiwan, as much as certain countries may not like it, will be the axis in the development of advanced computing in the coming years. China and the US investing millions. SIA is the acronym for Semiconductor Industry Association. It is the organization that seeks to advance policies that help the growth of the manufacturing industry in the United States. In your report Last year, they targeted 100 projects in 28 states totaling more than half a trillion dollars of private investment to triple the capacity of American industry by 2032. amd wants to be one of the protagonists of this operationbut also an Intel that seeks to position itself as a key factory on American soil and that has received strong government support. China is not far behind. With the explosion of robotics and AI, companies like SMIC or Huawei are developing alternatives to American technology to fuel their computing needs. They are looking for something else: industrial autonomy, and for that the Government has been releasing a series of funds to become one of the biggest names in the sector. If a subsidy package was launched in 2024 $47.5 billiona few weeks ago, other of up to 70,000 million to support that industry. Rvalidates directly with the US CHIPS of 52,000 million and 43,000 European million. The objective in both cases is the same: allocate obscene amounts of money to areas such as design, equipment, manufacturing and materials, as well as energy solutions that allow chips to be manufactured, but also to feed the companies in each country’s ecosystem. In the case of China, furthermore, there is an urgency to achieve these objectives as it is not able to have the advanced ASML machines and NVIDIA chips, something that the United States, Europe and Taiwan do have. India more of the same. But this is not a question of two great poles. South Korea also seeks become one of the great players of semiconductors, and another country that is designing an ambitious strategy to attract investment in semiconductors is India. Over the last few months they have been approving a series of aid packages (the last in January of this year, of 4.6 billion dollars) to boost the manufacturing of electronic components in the country. Apart from investing in their first state-of-the-art semiconductor factory (an investment of 11 billion dollars is estimated to achieve this), they are launching other aid and tax advantages to attract companies such as Samsung, Foxconn (also Taiwanese) or Apple to their territory. The goal is not to be a country that assembles the final product, but rather to manufacture critical components and move up the industrial value chain. Taiwanese expansion. The “problem” for these countries, and a great advantage for TSMC, is that they all seem to be very far away. India wants to achieve a chip made in 28 nanometer lithography, which is something that TSMC surpassed generations ago. AND China is fighting over 7 and 5 nm. Meanwhile, TSMC has refined its 3nm process and, as we say, TSMC’s great asset is not only that they have the experience and technology, but the ability to manufacture the best chips for customers who need those terribly refined chips. But there’s more: if China, Europe, the United States and India are moving, TSMC itself is diversifying. Yes Europe aspires to manufacture 20% of the planet’s semiconductorsit will be thanks to the TSMC plant planned in Germany. And although the US hates that it is a foreign company the one who has the upper hand in this great technological – and monetary – adventure of AI, TSMC has already settled on US soil. In the end, each territory seeks its … Read more
