You are currently viewing SemiWiki as a guest which gives you limited access to the site. To view blog comments and experience other SemiWiki features you must be a registered member. Registration is fast, simple, and absolutely free so please, join our community today!
This looks like a major step for the Chinese into the semi space. It looks like they will be producing 22nm chips for communications on FD SOI. It will be interesting to see how fast they progress up the ladder to compete at a state of the art level. I wonder how much IP they won't get and what attempts will be made to procure IP by any means possible, purchase or otherwise. With semis being the new steel, this is a move any country playing on the world stage must make, not only for the plant itself, but the social and technical foundation that goes with it. A broad and deep technical infrastructure is the future and any country that doesn't have at least a few will get left behind. China will have many and small countries will specialize. Any opinions and observations on if and when the Chinese will have a serious, state of the art fabs and time line would be appreciated.
Interesting analysis of the Chinese expansion and the effects on TSMC's brains:
TSMC will feel the pain
So, who could possibly lose anything as a result of Globablfoundries’ latest investment? Government officials in China reportedly believe that Taiwan Semiconductor Manufacturing Co. will feel the pain. TSMC’s loss won’t necessarily be technology, but people, they say.
This conclusion, however, isn’t directly tied to Globalfoundries’ Chengdu investment alone. The Chinese officials believe TSMC will suffer from the broader onslaught of fab investment in China by various parties -- including the latest by Globafoundries.
.................................
Do the math One of my sources in Silicon Valley said Chinese government officials are telling him to “do the simple math.”
China has committed thus far well over $100 billion for semiconductor manufacturing.
................................ This source estimated that TSMC today has less than 1,000 hard-core technology/manufacturing people. Certainly, TSMC possesses unmatched strength in IP. It has a lead – more than five years – over the competition, he estimated. But what if TSMC starts losing its own engineering talent?
Assume that $1 million per head is needed in recruiting -- with incentives and bonuses. “It would only cost $1 billion to recruit 100 percent of all the headcount in TSMC,” the source said. In the bigger scheme of things, this represents only 1 percent of China’s manufacturing investment budget.
user nl, the real question is will customers trust the Chinese to truly protect their IP and not become their competition. Also no plant exist in isolation and a whole ecosystem is required. How long would you or your source estimate for this to happen? Samsung definitely taught Apple a lesson in who to give trust to and how much. Also, the semi sector is a rapidly moving target, with technologies having a very short half life. If one does recruit the required people, they must be put on leading edge work almost immediately or lose their value. Any additional views or opinions are deeply appreciated.
user nl, the real question is will customers trust the Chinese to truly protect their IP and not become their competition. ....................... Any additional views or opinions are deeply appreciated.
Arthur, just my two cents:...I do not know whether Chinese customers trust Chinese semi (foundry)manufacturers......I just observe how 'people' vote with their feet....In every segment of society the competition is about (good) people (OK maybe American politics is the exception to this rule...just kidding...). And perhaps some good Taiwanese engineers like the challenge that mainland China seems to offer the coming decade in the semi manufacturing sector......We'll have to wait and see what will happen with the competition about semi-people the coming decade.....
Politics speaks loudly. Any self respecting Taiwanese will not work for the communist government. They know, Historically, how all their victims will be treated. It's not about only money.
Another question is will a government that suppresses free thinking in one or many areas and has numerous restrictions attract the free thinkers who are on the bleeding edge of almost all fields? These are mostly people who can live any where they want and are highly sought after and their choices are not just about money, but the total life and work environment, not only for them, but for their family and the people they associate with. What makes Silicon Valley great is not only the companies, but the total ecosystem that feeds on itself creating an ever faster moving geometric progression from edge to edge of one's life and ecosystem. An authoritarian state does not mix well with a rapidly changing environment built on an enitire ecosystem built on freedom.
It seems the Semi (Equipment) big-guys are in China these days to discuss and review the developing Chinese landscape:
Over 60,000 attendees are expected at SEMICON China opening tomorrow at Shanghai New International Expo Centre (SNIEC). SEMICON China (March 14-16) offers the latest in technology and innovation for the electronics manufacturing industry. FPD China is co-located with SEMICON China, providing opportunities in this related market. Featuring nearly 900 exhibitors occupying nearly 3,000 booths, SEMICON China is the largest gathering of its kind in the world.
