TSMC, the international chip foundry leader, recently held an interim board meeting and approved a capital budget of $2.887 billion to build a 28-nanometer mature process capacity in its Nanjing plant. In this regard, Xiang Ligang, a technology industry analyst and expert in the Chinese communications industry, wrote an article “Why is there no TSMC in China?” The Chinese communications expert and technology industry analyst Xiang Ligang immediately came out against it, claiming that “supporting TSMC’s Nanjing expansion will be a chicken-and-egg situation,” and that officials should ban TSMC’s expansion.
Xiang Ligang wrote an article in the Chinese media “Sina Finance” on the 23rd, putting forward 5 points against TSMC’s Nanjing plant expansion.
First, he said, in order to maintain a dominant position in the field of chip manufacturing, TSMC is promoting a strategy of high-end chip control for sub-14nm processes, in line with U.S. sanctions, not to help China OEM advanced chips below 14nm, and actively move chip factories for advanced processes to the United States. This way Chinese companies will not get advanced process chips.
Second, by expanding production in Nanjing, TSMC has successfully avoided Taiwan’s water and electricity shortages, and avoided the high cost and low efficiency of building a factory in the U.S., making it impossible for Chinese chip companies to compete with it.
Third, TSMC’s Nanjing expansion, planned for completion in 2023, at this time just as Chinese chip manufacturing enterprises to complete large-scale construction, began to face the market, these companies need market support, to form production capacity through orders for chips above 28 nanometers, to obtain revenue, in order to develop, to 14 nanometers or even more advanced process development. If the production of chips above 28nm are occupied by TSMC, these companies can not get orders, they lose the opportunity to survive, it is likely that these companies can not hold on, and finally monopolized by TSMC market.
He stressed that TSMC’s use of China’s water, electricity and low-cost manpower to produce low-cost chips will squeeze out Chinese chip companies and kill Chinese chip manufacturing in the cradle.
Fourth, “supporting TSMC’s Nanjing expansion will be a chicken-and-egg situation”. He analyzed, support TSMC in Nanjing to expand production, China can not get the chip manufacturing technology, Chinese companies also can not get the advanced process of the chip, will still be stuck neck. And after getting China’s resources, TSMC will use the low price of Chinese chip manufacturing companies are beaten.
Fifth, the interests of local governments must be subordinated to the national strategy. He said, TSMC Nanjing expansion, to a certain extent, will have a positive impact on the local economy of Nanjing, the local government may get a certain amount of tax revenue, but for China’s chip industry must be a blow.
Xiang Ligang asked the Nanjing government not to approve TSMC’s expansion in Nanjing, and not to give concessions and support in terms of land, power supply, water supply, etc. He also suggested that the “central” can “review” TSMC’s market “monopoly He also suggested that the “central government” could review TSMC’s market “monopoly”.
The news triggered a hot debate on the Internet. Netizens have sarcastically “begged the Chinese government to quickly sanction”, “must be sanctioned, the best factory are shut down, do not buy TSMC chips”, “he said this speech can be reported to him Taiwan independence ah XD “
There are also many netizens point out the key, “translation: can not steal TSMC technology gas gas gas gas”, “point 4 steal technology …” The company’s main goal is to provide a solution to the problem of theft of technology.
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