IIRC, this isn't happening because Europe doesn't have a large enough industry to purchase chips at the scale required to have such a huge investment.
This one in USA is for political reasons and likely will be feasible only if US manages to preserve the global political order.
Maybe Europe could have had force having a latest node FAB by banning exports of EUV machines and have factories built in Europe through flying Taiwanese engineers to build and operate it and call it huge success like USA is doing now.
I don't know if its worth the cost though. Sure it is good to have it bu in USA's case they even haven't built the industry around it, they will produce the chips in USA, call it "Made in America", collect the political points and ship the chips to the other side of the planet for further processing.
Is it really that big of a deal to have European machines being operated by the Taiwanese in the USA to print chips that need a visit to China to become useful? If the global world order collapses, will the 330M Americans be able to sustain the FAB? If it doesn't collapse, will that be still a good investment considering that Taiwanese have the good stuff for themselves and integrated into the full chain without flying parts across the world?
That narrative doesn't make sense, making Taiwanese build and run a factory in USA is not much different than an oil rich Arab country luring a western institution opening a campus in their desert. Its good to have but it doesn't make you a superconductor superpower.
To be fair, the USA does have many of the key companies and technologies that make these ICs possible in first place so it's not exactly like that but in the case of TSMC it kind of is.
Says the US who can't manufacture anything modern unless they urge a Taiwanese manufacturer using European lithography machines to make chips. Let's please not do this senseless patriotism that so en vogue in the US right now.
The United States possessed approximately 12% of the world's global chip manufacturing capacity as of 2021. This is a notably lower percentage of global capacity than the US enjoyed just a few decades previously (37% in 1990, for instance), before countries such as Taiwan and China ramped up their semiconductor production capabilities. Despite this decline, the semiconductor industry remains quite lucrative in the US. According to the Semiconductor Industry Association (SIA), semiconductors exports added $62 billion (USD) to the US economy in 2021, more than any product other than refined oil, aircraft, crude oil, and natural gas. Many of these imported chips return to the US in the form of finished consumer electronics.
Although the US held just 12% of the world's total semiconductor manufacturing capacity in 2021, US-based companies held approximately 46.3 percent of the total semiconductor market share. This seeming discrepancy can be explained by both the dollar value of imported US semiconductors, outlined above, and the fact that many US-based companies own and operate semiconductor fabrication plants in other countries, such as Japan. In such cases, the manufacturing capacity is added to that country's capacity rather than the capacity of the US, but the profits typically count as part of the US economy.
They do in Dresden Germany, but not nearly as cutting edge as the ones in US and Taiwan. US is a more useful strategic ally for Taiwan than EU. Not to mention the more expensive energy in Germany vs the US.
EU finds out the hard way that not having had energy independence plus a weak/non-existent military relying mostly on the US, has costly second order externalities that voters never think about or factor in their decisions(I'm European).
The best way to have peace is to always be ready for war. Being a non-armed hippie pacifist nation sounds good in some utopic fantasy world like the Smurfs, but in reality it only invites aggression from powerful despots like Putin and Xi and even your strong ally, the US, can exploit your moment of weakness and security dependence on it, to push its own agenda and trade terms on you.
That's true, but there is a large financial cost to always being ready for war. The US has spent 80 years being the "policeman of the world" for good or bad. Lots of bad decisions but the world also takes for granted the open seas, etc. that come at a great cost to Americans in reduced social services like health insurance and higher education.
Firstly, you don't need to spend America levels (more than than the next world powers combined) to have an efective military deterrent, since currently most EU member states barely spend 2% GDP on defense which is too little. You can have a strong military AND welfare services if you're smart about your state finances which many EU members are not(looking at you Germany), especially since defense investments create more jobs and innovations flowing back into the state coffers. Switzerland is a good example.
Secondly, America's defense is way more expensive than it needs to be due to a lot of high level corruption and lobbying from the military industrial complex profiteering when it comes to purchasing decisions, where a 10$ bag of bolts is bought by the military for 50K$, shovelings taxpayer money into the right private industry pockets. EU can achieve similar results with way less cost if it wanted to by minimizing this style of corruption but that's easier said than done. The only one rivaling America's military inefficiency is Germany who spends more than France, a nuclear power with aircraft carriers, but can't afford to issue underwear and dog tags to new conscripts.
Thirdly, America's lack of social services is not due to its powerful military, but due to political choices and inefficiencies. It could easily have better welfare if it wanted to since it can afford it with the world's largest GDP, but it chooses not to, since the current status quo is enriching a lot of private enterprises and parasites, while the concept of even more welfare is usually not a popular topic with the US voters which see welfare recipients as lazy and an unnecessary money sink funded by higher taxes on the middle class which they don't want. So their issue is social and political, not economical.
But being the "policeman of the world" has helped with preserving dollar's status as the major currency for international transactions between third countries, and in particular for oil, which in turn makes the dollar a desirable currency, because everyone has and wants to have dollars, and has allowed the federal central bank to print the trillions of dollars it had been printing over and over without it losing its value. Any other country's currency would have been super-inflated if they did the same.
The open seas is a myth. It is the American seas unless you have a lot of nuclear weapons.
> that come at a great cost to Americans in reduced social services like health insurance and higher education
But also brought lots of business and investment too. On total it's positive, otherwise the US would not do it. *I am not saying the distribution of the incoming wealth was equal.
> Lots of bad decisions but the world also takes for granted the open seas, etc. that come at a great cost to Americans in reduced social services like health insurance and higher education.
Nonsense, Americans pay the most for health insurance. It's merely about how you use the money. Same with education. The American economy is so great it could afford an entire second military industrial complex and still have enough money left for healthcare and education.
well, EU are enjoying NATO Protection (what I mean nato is only few nato country that really spend money on their military)
some country didn't spend as much even almost downscale its military and you expect the same benefit while didn't want any cost associated with it, how it make sense and fair for everyone???
TSMC also builds facilities in europe but they are not as advanced. Europe's strategic budget to finance such moves is much smaller. And this is purely strategic, these plants are a technology transfer program meant to de-risk the Taiwan/SK issue getting ugly. From an economic point of view, production in Asia is cheaper.
IIRC, this isn't happening because Europe doesn't have a large enough industry to purchase chips at the scale required to have such a huge investment.
This one in USA is for political reasons and likely will be feasible only if US manages to preserve the global political order.
Maybe Europe could have had force having a latest node FAB by banning exports of EUV machines and have factories built in Europe through flying Taiwanese engineers to build and operate it and call it huge success like USA is doing now.
I don't know if its worth the cost though. Sure it is good to have it bu in USA's case they even haven't built the industry around it, they will produce the chips in USA, call it "Made in America", collect the political points and ship the chips to the other side of the planet for further processing.
Is it really that big of a deal to have European machines being operated by the Taiwanese in the USA to print chips that need a visit to China to become useful? If the global world order collapses, will the 330M Americans be able to sustain the FAB? If it doesn't collapse, will that be still a good investment considering that Taiwanese have the good stuff for themselves and integrated into the full chain without flying parts across the world?
Well they made the fiirst step. They have the fab, other parts of industry may emerge with time
Europe really dropped the ball on semiconductor manufacturing.
That narrative doesn't make sense, making Taiwanese build and run a factory in USA is not much different than an oil rich Arab country luring a western institution opening a campus in their desert. Its good to have but it doesn't make you a superconductor superpower.
To be fair, the USA does have many of the key companies and technologies that make these ICs possible in first place so it's not exactly like that but in the case of TSMC it kind of is.
Top 5 Countries That Produce the Most Semiconductors:
According to https://worldpopulationreview.com/country-rankings/semicondu... the US has 95 fabs as of 2024 and 12% of Advanced Processes Market Share. The US had 37% in the 1990
Germany has 22
France has 5
Spain has 1
UK has 16
Ireland has 3
Italy has 2
Sweden has 1
Finland has 1
It's simpler than that. The USA holds the majority of the IP.
Says the US who can't manufacture anything modern unless they urge a Taiwanese manufacturer using European lithography machines to make chips. Let's please not do this senseless patriotism that so en vogue in the US right now.
The United States possessed approximately 12% of the world's global chip manufacturing capacity as of 2021. This is a notably lower percentage of global capacity than the US enjoyed just a few decades previously (37% in 1990, for instance), before countries such as Taiwan and China ramped up their semiconductor production capabilities. Despite this decline, the semiconductor industry remains quite lucrative in the US. According to the Semiconductor Industry Association (SIA), semiconductors exports added $62 billion (USD) to the US economy in 2021, more than any product other than refined oil, aircraft, crude oil, and natural gas. Many of these imported chips return to the US in the form of finished consumer electronics.
Although the US held just 12% of the world's total semiconductor manufacturing capacity in 2021, US-based companies held approximately 46.3 percent of the total semiconductor market share. This seeming discrepancy can be explained by both the dollar value of imported US semiconductors, outlined above, and the fact that many US-based companies own and operate semiconductor fabrication plants in other countries, such as Japan. In such cases, the manufacturing capacity is added to that country's capacity rather than the capacity of the US, but the profits typically count as part of the US economy.
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They are the critical only manufacturer/supplier of EUV machines.
Would not have been competitive due to labor costs. Also the chemicals used in manufacturing are quite toxic.
do you really think fabs are labor-intensive, or that they discharge toxic waste?
What a ridiculous thing to say about the home of ASML.
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We should have our own sovereign comparable technology companies in Europe by now.
Fail.
Sold the fundamental industries out to Philips who sold it to the Chinese.
They do in Dresden Germany, but not nearly as cutting edge as the ones in US and Taiwan. US is a more useful strategic ally for Taiwan than EU. Not to mention the more expensive energy in Germany vs the US.
EU finds out the hard way that not having had energy independence plus a weak/non-existent military relying mostly on the US, has costly second order externalities that voters never think about or factor in their decisions(I'm European).
The best way to have peace is to always be ready for war. Being a non-armed hippie pacifist nation sounds good in some utopic fantasy world like the Smurfs, but in reality it only invites aggression from powerful despots like Putin and Xi and even your strong ally, the US, can exploit your moment of weakness and security dependence on it, to push its own agenda and trade terms on you.
After all, whenever EU falters, America gains: https://www.youtube.com/watch?v=jE-E1lQunm0
That's true, but there is a large financial cost to always being ready for war. The US has spent 80 years being the "policeman of the world" for good or bad. Lots of bad decisions but the world also takes for granted the open seas, etc. that come at a great cost to Americans in reduced social services like health insurance and higher education.
Firstly, you don't need to spend America levels (more than than the next world powers combined) to have an efective military deterrent, since currently most EU member states barely spend 2% GDP on defense which is too little. You can have a strong military AND welfare services if you're smart about your state finances which many EU members are not(looking at you Germany), especially since defense investments create more jobs and innovations flowing back into the state coffers. Switzerland is a good example.
Secondly, America's defense is way more expensive than it needs to be due to a lot of high level corruption and lobbying from the military industrial complex profiteering when it comes to purchasing decisions, where a 10$ bag of bolts is bought by the military for 50K$, shovelings taxpayer money into the right private industry pockets. EU can achieve similar results with way less cost if it wanted to by minimizing this style of corruption but that's easier said than done. The only one rivaling America's military inefficiency is Germany who spends more than France, a nuclear power with aircraft carriers, but can't afford to issue underwear and dog tags to new conscripts.
Thirdly, America's lack of social services is not due to its powerful military, but due to political choices and inefficiencies. It could easily have better welfare if it wanted to since it can afford it with the world's largest GDP, but it chooses not to, since the current status quo is enriching a lot of private enterprises and parasites, while the concept of even more welfare is usually not a popular topic with the US voters which see welfare recipients as lazy and an unnecessary money sink funded by higher taxes on the middle class which they don't want. So their issue is social and political, not economical.
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But being the "policeman of the world" has helped with preserving dollar's status as the major currency for international transactions between third countries, and in particular for oil, which in turn makes the dollar a desirable currency, because everyone has and wants to have dollars, and has allowed the federal central bank to print the trillions of dollars it had been printing over and over without it losing its value. Any other country's currency would have been super-inflated if they did the same.
> but there is a large financial cost to always being ready for war. The US has spent 80 years being the "policeman of the world" for good or bad.
The US has never gone through the stage of being "ready for war" and instead went for the "living from one war to the next"
> takes for granted the open seas
The open seas is a myth. It is the American seas unless you have a lot of nuclear weapons.
> that come at a great cost to Americans in reduced social services like health insurance and higher education
But also brought lots of business and investment too. On total it's positive, otherwise the US would not do it. *I am not saying the distribution of the incoming wealth was equal.
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> Lots of bad decisions but the world also takes for granted the open seas, etc. that come at a great cost to Americans in reduced social services like health insurance and higher education.
Thanks for the laugh
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Nonsense, Americans pay the most for health insurance. It's merely about how you use the money. Same with education. The American economy is so great it could afford an entire second military industrial complex and still have enough money left for healthcare and education.
well, EU are enjoying NATO Protection (what I mean nato is only few nato country that really spend money on their military)
some country didn't spend as much even almost downscale its military and you expect the same benefit while didn't want any cost associated with it, how it make sense and fair for everyone???
You should update your information.
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TSMC also builds facilities in europe but they are not as advanced. Europe's strategic budget to finance such moves is much smaller. And this is purely strategic, these plants are a technology transfer program meant to de-risk the Taiwan/SK issue getting ugly. From an economic point of view, production in Asia is cheaper.