4 ms·
They run on the rate of change of chip production. To make up for the loss of China chip production in the US/Europe would have to increase the rate of change i
by InkCanon 2y ago
They run on the rate of change of chip production. To make up for the loss of China chip production in the US/Europe would have to increase the rate of change ie grow exponentially.
Going forward how bad of a move this is for one of Europe's leading tech companies will be apparent IMO. It's all about the moat. The sanctions started to fill in the moat when they catalysed a massive investment on lithography in China, but did wonders to preserve the moat of Nvidia, Intel, ARM, etc by setting their Chinese counterparts back a decade.
- bgnn 2y agoEU chip production is negligible, the change rate is positive but again negligible (single 16nm fab). US has some spending but rely heavily on Intel. That says a lot. So, it's Taiwan and Korea. Though TSMC and Samsung are scaling up capacity, they won't do it to the scale as AI-bros want it. It's too big of a risk to have over-capacity in a downturn. This happened in the past several times and the industry learned to always stay couple of steps behind the hype. Similar to oil and gas industry.