With the new facilities in Arizona up and running, the Americans have no more use for the TSMC facilities in Taiwan. It is time to close them down. The latest order to stop selling 7nm chips to China is about as good as killing TSMC Taiwan for good. The Americans can now happily rely on the TSMC, America in Arizona to produce for the American market.
So what else can TSMC Taiwan do? With TSMC America producing for the American market, TSMC Taiwan's main customer is China. Without China as its main customer, the rest of its customers added together would not be able to replace China, would not be enough to cover the cost of the facilities. It would run into the red very soon, too big a plant, overcapacity but no big customers to sell to.
Maybe TSMC Taiwan should consider divorcing from TSMC America and selling it to SMIC for good. In this way Morris Chang could still recover some costs and at the same time keep the workers, technicians and engineers continue to be employed. Not doing anything means closing down or downsizing and retrenchment.
Caveat, the American owners would have to agree to sell it to China. There will be no other takers if it is not allowed to sell to China. The Americans have completed its decoupling from Taiwan and there is no need for TSMC Taiwan anymore.
2 comments:
TSMC, Taiwan, is top priority target for the Americans to bomb and destroy. It is better to sell it quickly.
TSMC in USA will be competing against the likes of Samsung and other domestic USA chip makers - for the USA market. Now, what does all this mean? It will be a dog-eat-dog situation if they cannot compete outside the USA market, with China out of the question. Let us watch the dogfights.
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