Older generation fabs are critical. They power most of the machines around us, and often pump out low priced but capable chips. I certainly am not contesting that.
I responded to someone who seems to believe this is the great AI equalizer. This fab has no relevance to AI. And FWIW, Europe already has a number of much more advanced fabs! Intel is currently upgrading Ireland to "Intel 4" spec (which in TSMC land would be 7nm), and is building other fabs, for instance.
Ultimately this story is "German automakers want more control over supply chain of vanilla automation chips", and not much more.
As an aside, it's always interesting that we talk about Taiwan's revered chip prowess (South Korea is up there as well)...when the Dutch company ASML is really the technology key. TSMC executes extraordinarily well, but they wouldn't be doing it without ASML.
Lets just say semiconductor manufacturing is the best example of regional competencies and global trade.
Globalization has failed on many fronts and resulted in race to the bottom outcomes, but here it works well due to specialization.
Having understood that, one can also see a core TSMC strength is that Taiwanese workers are disciplined and work long hours for moderate pay, a culture that European and American labor will never accept. So all these new factories in US/EU should be treated as high cost alternatives, justifiable only for non cost-sensitive customers like defence/aerospace/high end cars.
I am no expert, but my understanding is that to get nice chips, you need both ASML and TSMC. They have very different areas of expertise and posses very different know hows.
The way I see it, things like that are critical for long term capability maintenance; having or not having fabs for mass production of simpler chips is what determines whether your country will have a workforce which would make it possible to build and run a cutting edge fab later; if you keep offshoring the cheap and simple stuff, eventually the state of art stuff goes there as well.
I responded to someone who seems to believe this is the great AI equalizer. This fab has no relevance to AI. And FWIW, Europe already has a number of much more advanced fabs! Intel is currently upgrading Ireland to "Intel 4" spec (which in TSMC land would be 7nm), and is building other fabs, for instance.
Ultimately this story is "German automakers want more control over supply chain of vanilla automation chips", and not much more.
As an aside, it's always interesting that we talk about Taiwan's revered chip prowess (South Korea is up there as well)...when the Dutch company ASML is really the technology key. TSMC executes extraordinarily well, but they wouldn't be doing it without ASML.