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He may have the last laugh. His traveling around the world and threatening to build fabs in the UAE and Taiwan is a diplomatic scheme to get the U.S. hawks into action.

And lo and behold, ClopenAI has already hired CHIPS act people:

"To bolster its efforts, OpenAI has hired Chris Lehane, a Clinton White House lawyer, as its vice president of global policy, along with two people from the Commerce Department who worked on the CHIPS Act, a bipartisan law designed to increase domestic chip manufacturing. One of them will manage future infrastructure projects and policy."

We'll build plants overseas if you don't give us CHIPS Act money is a great scheme.



> Build fabs

Such a misguided take.

If it were that easy to build fabs to compete with TSMC, Intel would do it. China would do it.

Hardware is way harder than software.


Which is also why it made good sense for TSMC to dismiss Altman. Some software/crypto/podcast/AI-hype bro shows up and asks for 36 fabs to be build, with no plan for monetizing them. Intel is struggling with their fab business as is, it's a difficult business to be in. Asking for 36 fabs, worth 7 trillion dollars is just absurd. Even if TSMC got the money up front, they'd still be holding those fabs and paying for their upkeep or dismantlement when/if OpenAIs predictions turn out to be wrong.

It's just an insane risk to take on.


Threatening to build fabs is not addressed at you but designed to trigger idiot politicians with influence to unlock CHIPS money. The politicians do not know or care if building fabs is possible.


US is already throwing CHIPS dollars at Intel whose latest chips are made by...TSMC

https://www.pcworld.com/article/2355435/intels-lunar-lake-is...


1) the CHIPS money Intel received is going to the Foundry, not the products group;

2) that's not Intel's latest chips, these are: https://www.intel.com/content/www/us/en/products/details/pro... https://www.intel.com/content/www/us/en/products/details/pro...

One fully made by Intel Foundry, the other with at least some considerable TSMC parts (which isn't unexpected for the market segment it's in and the fact it was allegedly designed by Habana before it was bought out).


Right from Wiki my friend

    Lunar Lake is the codename for Core Ultra Series 2 mobile processors designed by Intel, released on September 24, 2024.
    
    Manufactured by: TSMC
https://en.m.wikipedia.org/wiki/Lunar_Lake

It's September 27 round abouts here so I'm not sure it gets more recent than that.


1) Funny how you didn't address my first point which completely disproves your lie about Intel sending CHIPS money to TSMC.

2) It does get more recent than that: Granite Rapids (Xeon 6 built fully on Intel processes) and Gaudi 3 (TSMC built) were announced on the 24th and will be released later this year.

Maybe you shouldn't get so sassy when discussing things you know very little about.


    > ...and will be released later this year
You answered your own question; it's not a product on the market and therefore not released yet.

    > ...which completely disproves your lie about Intel sending CHIPS money to TSMC
I mean, this is kinda silly right? If I get a $48,000 a year housing stipend that I can only spend on housing, that means I have $48,000 more to spend elsewhere.

Also, you're arguing a strawman here. What I wrote:

    > US is already throwing CHIPS dollars at Intel
Which they are.


>I mean, this is kinda silly right? If I get a $48,000 a year housing stipend that I can only spend on housing, that means I have $48,000 more to spend elsewhere.

They didn't receive any money from CHIPS Act yet, did they?


Or maybe, just maybe, TSMC has gaslit all of us to think it is much harder than it really is. If Taiwan isn't needed for its chips, what is the strategic interest of the USG?


It's not like nobody is trying to compete with TSMC, Samsung and Intel are doing their best, but TSMC are consistently ahead despite all of these companies using the same ASML lithography machines.


Good point. However my mind is drawn back to the fact that the USG licenses the patents to ASML. A tweak or change of that licensing model could suddenly make TSMC's cost basis rise and Intel's drop. We are after all talking about US national security interests as the backdrop - the usual market rules may not apply so cleanly.


TSMC has way to many competitors for this to make sense. And besides one very important key supplier who has huge wait lists for their EUV stuff, ASML.


Sometimes the evidence speaks for itself. I'm not an expert in this field, but the fact that literally no one in the world can compete toe to toe with TSMC is a sign of ... something. If nothing else, "Taiwan #1".


No, TSMC is really that special. Intel has been struggling for a while now.


> We'll build plants overseas if you don't give us CHIPS Act money is a great scheme

The CHIPS act has provisions to help fund fabs in allies.

This is why Biden and Modi announced a Feb dedicated to US and Indian defense systems [0] at the QUAD summit as well as as the designation of the UAE as a "Major Defence Partner" along with India [1] which includes tech transfer conditions.

A significant portion of the CHIPS and IRA is set aside to help with subsidizing international allies tech and innovation ecosystems in order to ensure they don't lean towards China [2]

[0] - https://www.bloomberg.com/news/articles/2024-09-23/biden-mod...

[1] - https://www.reuters.com/world/us/harris-plans-raise-gaza-cea...

[2] - https://cset.georgetown.edu/publication/agile-alliances/


These designations are nothing but schemes to lock in major weapon buyers into the US MIC ecosystem.


Partially, but defense is the biggest buyer for electronics - which is why the CHIPS Act and "Supply Chain Security" became a thing.

For a number of commodity components, there was a heavy reliance on China due to low margins. Now there is a push to move those portions of the supply chain away to other partners.




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