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does TSMC own any valuable tech? I thought they just purchase the machines from ASML, a dutch company. if there is market for chips, why doesn't some EU company

does TSMC own any valuable tech? I thought they just purchase the machines from ASML, a dutch company. if there is market for chips, why doesn't some EU company set up a foundry in EU? I'm sure there are many capable companies and the lithography tech is already made in EU.

dannyw 5y ago
EUV machines are a small but critical part of overall 7nm and lower fabrication.
stdgy 5y ago
You don't just 'purchase machines' to magically create cutting edge semiconductors. If this were the case, why in the world would ASML be selling them to TSMC? ASML's Q1 Net Revenue: $2.79 billion TSMC Q1 Net Revenue: $12.9 billion Don't you think ASML would just pocket the world's semiconductor income if this were the case? The machines are only a part of the equation. How you use the machines and the processes you develop to create cutting edge semiconductors are arguably the more important part of the equation. As someone else mentioned in the comments, think of it as the difference between being a chisel manufacturer and a master sculptor. The tools are only a part of the equation. The methods and processes developed by TSMC are valuable pieces of technology. This value has an additional moat surrounding it due to the astronomical capital investment required to use it. Even if you knew of all of TSMC's process information, you wouldn't be able to use it without tens of billions of dollars in investments, many years of construction, an adequately skilled workforce and right customer contacts.
- supergirl 5y ago
  by that logic, why doesn't TSMC build the machines themselves and pocket the money?
  - MangoCoffee 5y ago
    different company have different skillset. Apple designed M1 but outsourced to TSMC for production. if Apple can design, surely they can produce, no? just buy some EUV machines, create the fab process and build a fab. easy, right?

dannyw 5y ago

EUV machines are a small but critical part of overall 7nm and lower fabrication.

stdgy 5y ago

You don't just 'purchase machines' to magically create cutting edge semiconductors. If this were the case, why in the world would ASML be selling them to TSMC? ASML's Q1 Net Revenue: $2.79 billion TSMC Q1 Net Revenue: $12.9 billion Don't you think ASML would just pocket the world's semiconductor income if this were the case? The machines are only a part of the equation. How you use the machines and the processes you develop to create cutting edge semiconductors are arguably the more important part of the equation. As someone else mentioned in the comments, think of it as the difference between being a chisel manufacturer and a master sculptor. The tools are only a part of the equation. The methods and processes developed by TSMC are valuable pieces of technology. This value has an additional moat surrounding it due to the astronomical capital investment required to use it. Even if you knew of all of TSMC's process information, you wouldn't be able to use it without tens of billions of dollars in investments, many years of construction, an adequately skilled workforce and right customer contacts.

supergirl 5y ago
by that logic, why doesn't TSMC build the machines themselves and pocket the money?
- MangoCoffee 5y ago
  different company have different skillset. Apple designed M1 but outsourced to TSMC for production. if Apple can design, surely they can produce, no? just buy some EUV machines, create the fab process and build a fab. easy, right?