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My biggest fear of fallout from something like this is that Intel could flex their financial muscle with TSMC and squash AMD just as they're pulling ahead. It
by bcrl 6y ago
My biggest fear of fallout from something like this is that Intel could flex their financial muscle with TSMC and squash AMD just as they're pulling ahead. It wouldn't take much for Intel to buy out all of TSMC's available wafer starts...
- pengaru 6y agoTSMC has some say in the matter. If they view Intel as a competitor and AMD as a long-term customer which would seem rational, why would they blindly auction their capacity to the highest bidder of the two? Frankly I'm more concerned with Apple's deep pockets continuously monopolizing TSMC production.
- bcrl 6y agoI think Apple is in some ways a better customer for TSMC than AMD is. Apple has far longer lead times than AMD since they're producing a fully assembled system. AMD seems to be short on supply with the launch of every new generation, and it feels like they have been underestimating demand. It's a good problem to have, but difficult to handle without having piles of cash on hand.
- pengaru 6y agoFor TSMC? perhaps. For customers? Absolutely not. I have zero interest in a future where Apple produces the only general purpose computers containing state of the art silicon.
- CameronNemo 6y agoI would think TSMC also wants a diverse CPU design market. The higher competition decreases design margins, leaving more profit margin for the comparatively monopolized fabrication.
- davrosthedalek 6y agoIt would be terrible news if a new CPU/GPU is not in short supply at launch. The short-term short supply generates the long-term short supply :)
- Exmoor 6y agoI don't think it "wouldn't take much". Intel certainly has resources, but they'd also be competing against Apple, nVidia, and some other heavy hitters. Additionally, I doubt the TSMC would have much incentive to de-prioritize the needs of a valued customer (AMD) against a competitor in the semiconductor space who will likely switch back to their own fabs as soon as they're competitive (if they ever are).
- bcrl 6y agoFabs take time to build. Just look at how long it took Intel to scale up their 14nm capacity when it became clear the 10nm process wasn't going to start working any time soon. On the other hand, the added revenue would further cement TSMC's position as leader in the process race. Given the resources of so many customers pushing the leading edge, I don't see how Intel could recover anytime soon. Unless TSMC grows to become fat and complacent like Intel did.
- hinkley 6y agoI thought I heard Apple already bought out a lot of their capacity?
- delfinom 6y agoTSMC is a Taiwanese company, the very public and popular head of AMD is Taiwanese and AMD maintains Taiwanese offices, there's always going to be some bias in this kind of tradeoff that won't get AMD screwed.