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The last few years ASML's problem was not supply chains, it was a very high demand. Production was ramped up successfully, but not enough to meet that demand. W
by Fronzie 4y ago
The last few years ASML's problem was not supply chains, it was a very high demand. Production was ramped up successfully, but not enough to meet that demand.
With regards to Peak IC: atoms aren't getting smaller, Feynmans' "Plenty of room at the bottom" might indeed run it's end.
- avidphantasm 4y agoIf you chronically can’t meet demand for your critical patented technology, should you be forced to license on terms that allow demand to be met?
- regularfry 4y agoThe issue isn't patent licensing. If it was, we'd see something competitive coming out of China.
- vlovich123 4y agoNot for something like ASML which is bleeding edge manufacturing tech that only one company in the world has figured out. It’s very very difficult to replicate that research unless you steal it and replicate all of the surrounding work. Stealing is the easy part and I’m sure China has done that and is attempting replication. But there’s a lot more involved to it I think that’s tricky, troubleshooting and solving bugs is harder when you haven’t internalized how things work (you’re basically rediscovering all the things ASML has learned producing and integrating their tech into a finished product).
- regularfry 4y agoThat's exactly what I mean. Patents requires publishing so that it could be replicated.
- mikewarot 4y agoKnowing the underlying principles is only a starting point. The hard work is going from that to production. Sounds simple, costs millions.
- vlovich123 4y agoA nation state like China is developed enough that it doesn’t care about millions or even billions for something as strategic as this. They’re looking to potentially invade Taiwan to take over TSMC to get their hands on bleeding edge tech which is going to be significant more difficult and expensive.
- mikewarot 4y agoEast Germany tried the same strategy during the Cold war
- vlovich123 4y agoCompanies know this and a) intentionally make the parents vague (also helps with enforcement) and b) keep a huge amount back as trade secrets. That’s why you have industrial espionage.
- IshKebab 4y agoPatents don't provide enough information to replicate an invention generally. Especially for complex industrial processes.
- _a_a_a_ 4y agoThe principal goes that no, your prices rise which throttles demand until the two meet, then with the extra money you've charged, you build out new production capacity. That's the idea of free market anyway.
- mikewarot 4y agoThat assumes supply chains still exist that can provide all of the necessary components.