- cross-posted to:
- hardware@lemmy.world
- cross-posted to:
- hardware@lemmy.world
He emphasized that the proposed tariffs would leave companies with no choice but to invest in domestic production facilities to avoid high taxes.
No choice except the obvious: Pass the cost of the Tax into the customer because there’s no way they’re going to spend billions to stand up a US fab plant anytime soon.
More so when these plants take 10 years to build. They will pass along the cost and just wait him out.
No choice except the obvious: Pass the cost of the Tax into the customer because there’s no way they’re going to spend billions to stand up a US fab plant anytime soon.
TSMC is standing up fabs in the US, mostly because we’re bribing them to do so.
The problem is that it takes literal years to build high tech manufacturing and isn’t something you can yank out of your ass to satisfy some idiot politician.
By Taiwanese law, TSMC isn’t allowed to move cutting edge processes to its US plant. The overseas operations have to be at least one gen behind.
From a strategic point of view, it makes sense for the Taiwan government to do this. They don’t want the US to suck them dry then cut a deal with the mainland.
I mean, it’s economic blackmail: we won’t build the good shit anywhere else, so if you don’t protect us, you get nothing.
Effective, but only if you’re dealing with someone who is rational, and, well, have you seen the brain-worm oligarchs in charge of the US lately?
For Taiwan, it’s a matter of survival, plain and simple. They’re not going to give up their monopoly because without it they cease to exist. It does not matter how irrational the person they’re dealing with is, because for them this is life and death, literally. TSMC is the single biggest national security asset they have.
Also, because these investments are long-term when the tariffs are likely to only be short term.
Yeah but what corporation is going to think of the obvious solution?
Awesome! Send them to Canada, we can build data centres and sell the cloud services back to Americans powered by the electricity that we expect to be tarriffed, and cooled by the water we won’t sell.
Or Mexico! We’re already on it. Sheinbaum is working to get a chip manufacturing plant up in Guadalajara. Exciting stuff, honestly.
Make the chips in Guadalajara, ship them out of Puerto Vallarta to Vancouver to power server farms in Surrey; cut the US out entirely.
Mexico isnt about to replace TSMCs capabilities.
I didn’t say that.
Hell, use the waste heat to power hot water heaters or something. It blows my mind that we don’t do more cloud computing in cold environments. The servers produce heat, the people need heat, solve one problem with another. Instead we seem to be putting them in the driest and hottest climates available.
Indeed. My Alienware doubles as a space heater in my north facing office.
What a goddamn dumb fuck
So, US is finally getting EU hardware prices
Probably Aussie hardware prices at this rate.
LOL
So where is the US going to get its chips from then tax TMSC makes over 90% of chips?
TSMC was supposed to open a plant in the US, but apparently that takes a bit of time to get running.
I thought the US FAB was also going to be a generation behind?
Correct. Taiwan considers it a matter of national security to never allow their best processes to be exported. That monopoly is why Taiwan still exists.
They did say American worker is lazy and expects highest pay lol
Cry me a fucking river. This corpo really forgot who defends their precious island. American tax payer spends good money in your support. Show some fucking respect.
The US gets an unsinkable aircraft off the coast of PRC, while Taiwan assumes all the risks of a war with PRC. If anything the US should show some respects to its allies instead of treating them like disposable pawns.
Sir, I am not “the US”, i am USian pedon, merely a subject, speaking on my own behalf.
Maybe I’m misreading because one poster above deleted their comment, but I can’t understand: how exactly has TSMC shown “disrespect”? Or was the poster showing disrespect?
Putting corporations aside and speaking of states: the US and Taiwan have respectful and friendly relations. They depend on each other.
Now, a tariff of 25-100% on a partner’s primary export and one’s own vitally important import is more like putting a shotgun to one’s leg out of spite. It would be hurting oneself and hurting the other side - and not a little bit.
The US is a store that Taiwan frequently shops in - a very big defense equipment store, I should say. Some of the toys cost money, but if you buy enough, you get kickbacks - the US gives Taiwan some security assistance for free. It also says it will assist Taiwan if anyone (we can imagine who that might be) attacks it.
Meanwhile, Taiwan is a store the world frequently shops in - a very big microprocessor, memory and microcontroller store. Frequent customers can tell TSMC “it would be nice if you brought some of your business here, we have a vacant spot suitable for your plans”. And it works: one factory will be built in the US, one factory in the EU. Maybe elsewhere too. Getting that to happen didn’t need Trump or insane levels of customs tariffs.
To achieve that, people just negotiated like normal people do. TMSC know they operate in a country prone to violent earthquakes and close to an agressive neighbour, they are quite OK with placing some of their business abroad.
I am a US worker and TSMC execs spoke shit about the US workers and said we get paid too much.
I am expected to tolerate such behavior from a foreign corpo parasite when my taxes are spent to defend them?
Y’all, can’t conceptualize the separation here lol
Brother have you just willfully ignored what US CEOs say every day about US workers?
Read my body of work dear…
Wasn’t this the same justification that America used to send factory jobs overseas? I feel repeating verbatim what the US has stated is the ultimate sign of respect.
Sir, I am not “the US”, i am USian pedon, merely a subject, speaking on my own behalf.
If anything US should show some respect & lick the boots of EU, Taiwan & India
Y’all got some weak reading comp here lol
Suuuuuuuuuuuure
deleted by creator
Ah yes. Our sworn enemy: Taiwan.
It would be comical if it wasn’t so sad.
Trump had to tariff someone or else he was going to look stupid for never shutting up about tarrifs.
He’s going, or is, senil. The tariffs are just something that got into his head that are simple to understand.
he is going, or is, senile
How the hell we’ll be able to tell
Did you see the vid where he thinks Spain is the S in BRICS?!
🤡
He’s probably has had dementia for a while, that’s where his lean and dumptruck ass come from.
https://miro.medium.com/v2/resize:fit:974/1*6-MPRi55oBECO6mrZEQfAg.png
Trump is on china’s side. Make no mistake he like their way of doing things.
China I get, but Taiwan ? It’s literally a US-proxy state
I’m sure that orange fuck will try to sell it to “beautiful” president Xi, or to clean it out to stop the conflict, or something like that, that bubbles up in his senile demented brain.
I mean Puerto Rico is literally part of the US and that doesn’t seem to matter for them…
Trump is a chinese puppet apparently
And in two weeks there will be a special executive order to free his Tech Bro oligarch buddies from these tarrifs so Meta and Elmo are not forced to pay a dollar extra.
If TSMC doesn’t want to set up shop in the USA, are the USA going to be able to produce chips on par with what TSMC can fab?
they are building a plant in Arizona, but i doubt it’ll ever be as good as Taiwan can do, not just because Taiwan has the skills but if Taiwan doesn’t have this then what’s the point of protecting it? It’s sort of a way to say, if you want to to continue to access the best chips in the world you should protect us from China
Taiwan are very clear about this; they (correctly) consider their monopoly on high end chip manufacturing to be an urgent matter of national defence and it is of the highest priority to them to keep it solely within Taiwan. They will never allow their best processes to be exported.
TSMC have advanced chip fabrication factory in Arizona in the US.
“TSMC will produce 3nm chips in the U.S., and Taiwan has already given TSMC the go-signal to manufacture 2nm chips abroad.”
But it cannot produce the higher end chips. That was explicitly part of the agreement when they built the facility. They’re only willing to fab low end product outside of Taiwan.
I was being very specific when I said “their best processes.”
I wouldn’t say 5nm and 3nm are low end
Sure, “low end” wasn’t a perfectly scientifically accurate way to describe it. I apologize for my terrible lack of academic rigor.
The point is that they’re not going to let their highest end processes be replicated outside of Taiwan. Or, rather, the Taiwanese government is not going to let that happen, because fear of losing access to that technology is their one bargaining chip with the West. Without that, they cease to exist as a country. There just isn’t enough incentive for anyone to risk a war with China otherwise.
Totally agree that it’s a sound strategy to keep their latest and greatest on home soil. At the same time they are starting to implement tooling for important parts of clients designs like
Core chiplets for Ryzen
iPhone SOCs
OK. It is ahistorical and hyperbolic to say they may never do that. They also have their fabs i n Taiwan rigged to self destruct if they get invaded. They are setting up shop in a different country. As fab dies shrink they get harder to make, they are building expertise somewhere else in case.
It’s already fabbing chips
People downvoting you can’t do a quick search:
TSMC is absolutely up and running already in the US.
Yeah I know, talking a lot of blowhard talk. Chip die size was the arbitrary argument, but again, that just takes time. They are hedging their bet with a supposed ally with China being their big threat.
"TSMC will produce 3nm chips in the U.S., and Taiwan has already given TSMC the go-signal to manufacture 2nm chips abroad. "
I believe the plant is operational, as they have bragged about “great production tests”. What I haven’t heard of is any orders placed for that plant’s products.
The US could probably do it… With hundreds of billions of government incentives to rapidly stand up the entire supply chain… Which would still take at least a decade. The machines that TSMC uses are made by ASML and themselves have a global supply chain of over 500 separate companies and are backordered for several years due to their inherent value.
In short, no.
It will take them 20 years to catch up to the 5-7 years they are behind, even with all the money in the world.
As you say, it’s setting up the supply chain.
Intel has been trying to get itself into that position for years, with huge amounts of public money being pumped in, and it is struggling so badly the company lost patience and fired the CEO who had the best chance of getting this done. And, as others have said, it doesn’t look like TSMC is about to let its US fabs do the most advanced stuff even if they could.
So this move will just make the best technology less accessible to the USA and tech products more expensive for Americans, for the foreseeable future.
for the foreseeable future.
Or 4 years, whichever comes first.
From what I understand one of the things that is protecting Taiwan from China is their fabs. They will fight for their lives to make sure they are protected by this.
As someone with family over in Taiwan, I really want them to be okay. Things are getting depressing globally.
It’s going to impact American consumers a hell of a lot more.
Came here to say that. Americans pay the tarrifs. He’s raising prices for American consumers.
Maybe if that happens, computer parts won’t get a huge markup here in Japan anymore in that … ah, who am I kidding; they’ll still gouge us.
But I thought the Tim Apple donation to the trump inauguration was supposed to curry enough favor to avoid this.
ThisIsMySurpisedFace.jpg.
Oh he did, there were supposed to be 500% tariffs /s
Awesome. More availability for the rest of us.
Lol, I’d love to watch everyone in the US paying triple for literally anything that has electronics in it.
If Trump then wants to build chips in the US, good luck. ASML is the only one with the machines, first of all, and by the time he can buy those, something tells me they might have some extra tarifs added to them, and then paying US salaries for electronics would skyrocket prices to people having to pay four-five times the amount of what they’re paying now.
Not saying that the near slavery conditions in Asia are fine, that should have changed decades ago, but the way trump is doing this is hilarious, people will want his head on a plattee
iirc the machines that TSMC uses are made in Holland right when he’s also apparently doing his best to piss of Europe, even then there’s like a decade long order backlog.
They are made in the Netherlands, yeah. ASML
Wait until his voters see their toy prices flying up
His voters seem to think it’s Taiwan that pays the tariffs.
Can’t wait to start putting Trump “I DID THAT!” stickers next to $5000 walmart laptops
I’m considering placing a bulk order for these stickers: https://cnliberalism.org/store/p/my-tariffs-did-that-sticker
my tamagotchi 😢