Well, looking at a microchip under a microscope might reveal a lot about how Intel/AMD/Nvidia design their chips. But it’s not going to tell you how those chips were then constructed.
That’s extremely specialised knowledge requiring very advanced technology and tooling that’s globally only really available at TSMC. It’s also so specialised that no one person holds all the knowledge in their head, it requires hundreds or even thousands of people.
But even if you figure that out, you still need to actually know how to build the tools that can manufacture wafers. And that knowledge is almost exclusively known to ASML, a company whose products can cost nearly half a billion dollars each.
China does invest in their own fabs, but even they purchase the (older-gen) tools from ASML. Compared to TSMC, they’re 2 generations behind. Compared to ASML, they’re 5 generations behind.
That’s not to say they aren’t innovating by the way. Huawei/SMIC developed chips that are only approx. 18 months behind using innovative techniques that gets more out of the older equipment they’re forced to use. It’s impressive stuff. But again, this does require the state to throw its full weight behind the initiative to create more domestic manufacturing, which a single billionaire is unlikely to manage on their own.
Thank you for the detailed response! That’s absolutely fascinating!
So does TSMC have some kind of exclusivity agreement with ASML, or is it for financial reasons, or is it mainly a personnel/knowledge issue that gives them their edge?
I suppose any effort to spin up a new fab is going to be behind the 8-ball immediately for a while while they deal with all the issues that arise.
One last thing: could you give some advice on how to get more educated on the topic? Any favourite news sources, or recommended readings, or is it just a matter of “seek and ye shall find”?
So does TSMC have some kind of exclusivity agreement with ASML, or is it for financial reasons, or is it mainly a personnel/knowledge issue that gives them their edge?
It’s all of those I suppose. Not many know how to use ASML’s machines, not many have the means to purchase them and then there’s export controls that prevent ASML from exporting the latest and greatest to China.
One last thing: could you give some advice on how to get more educated on the topic? Any favourite news sources, or recommended readings, or is it just a matter of “seek and ye shall find”?
Mostly “seek and ye shall find”, though I also know a bit from a cousin who works for ASML.
Well, looking at a microchip under a microscope might reveal a lot about how Intel/AMD/Nvidia design their chips. But it’s not going to tell you how those chips were then constructed.
That’s extremely specialised knowledge requiring very advanced technology and tooling that’s globally only really available at TSMC. It’s also so specialised that no one person holds all the knowledge in their head, it requires hundreds or even thousands of people.
But even if you figure that out, you still need to actually know how to build the tools that can manufacture wafers. And that knowledge is almost exclusively known to ASML, a company whose products can cost nearly half a billion dollars each.
China does invest in their own fabs, but even they purchase the (older-gen) tools from ASML. Compared to TSMC, they’re 2 generations behind. Compared to ASML, they’re 5 generations behind.
That’s not to say they aren’t innovating by the way. Huawei/SMIC developed chips that are only approx. 18 months behind using innovative techniques that gets more out of the older equipment they’re forced to use. It’s impressive stuff. But again, this does require the state to throw its full weight behind the initiative to create more domestic manufacturing, which a single billionaire is unlikely to manage on their own.
So valuable to the point that if anyone, billionaire or invading nation tries to take over, they literally have self destruct built in
https://www.tomshardware.com/tech-industry/tsmcs-euv-machines-are-equipped-with-a-remote-self-destruct-in-case-of-an-invasion
Thank you for the detailed response! That’s absolutely fascinating!
So does TSMC have some kind of exclusivity agreement with ASML, or is it for financial reasons, or is it mainly a personnel/knowledge issue that gives them their edge?
I suppose any effort to spin up a new fab is going to be behind the 8-ball immediately for a while while they deal with all the issues that arise.
One last thing: could you give some advice on how to get more educated on the topic? Any favourite news sources, or recommended readings, or is it just a matter of “seek and ye shall find”?
It’s all of those I suppose. Not many know how to use ASML’s machines, not many have the means to purchase them and then there’s export controls that prevent ASML from exporting the latest and greatest to China.
Mostly “seek and ye shall find”, though I also know a bit from a cousin who works for ASML.