I had a meeting with someone close to TSMC management when I visited Taiwan. He said TSMC was shocked to learn how “cheap” Japan has been. Land is cheap. Water is cheap. And, people are cheap. It happened because of the prolonged depression (20+ years) and falling yen in recent years. They found Japan’s manufacturing is quite competitive.
Yes the mainstream English financial media outlets didn't bother with this important development. Great boots on the ground insights Kevin, backed with revealing numbers. Excellent piece, thank you.
Unfortunately, Kumamoto is not known for semiconductor industry, so it is still challenging to build supply chain networks, but it will happen. I’ve heard many companies in Nagano prefecture (known for semiconductor and medical devises) are heading to Kumamoto.
Might be worth examining what the actual problem/s is/are in America today for successful foundry. I am guessing a post-manufacturing MBA margin culture is one. And government pork (from DEI to green to whatever - i.e., 6,000-page trade agreements) is another. But there also is a fascinating gray area in which today’s management teams, let alone the federal government, cannot openly countenance the demanding work requirements that define a TSMC. In which case we demand the fruits of a process that we condemn. Liberalism and its discontents, digital version.
A very nice piece. Disappointed no substantial English coverage (yet) and also the US build out is so slow. But again that does not surprise me. I passed through LA and Hawaii the last two weeks and the poor quality of American infrastructure and buildings continues to beggar belief, and the efficiency of services … don’t ask my view.
Fabulous read, Kevin! thanks for keeping us informed on this extremely important topic.
I read that South Korea is also making similar overtures to TSMC et al. Any other countries competing for chip mfg capacity?
Cheers!
I had a meeting with someone close to TSMC management when I visited Taiwan. He said TSMC was shocked to learn how “cheap” Japan has been. Land is cheap. Water is cheap. And, people are cheap. It happened because of the prolonged depression (20+ years) and falling yen in recent years. They found Japan’s manufacturing is quite competitive.
Yes the mainstream English financial media outlets didn't bother with this important development. Great boots on the ground insights Kevin, backed with revealing numbers. Excellent piece, thank you.
Unfortunately, Kumamoto is not known for semiconductor industry, so it is still challenging to build supply chain networks, but it will happen. I’ve heard many companies in Nagano prefecture (known for semiconductor and medical devises) are heading to Kumamoto.
Might be worth examining what the actual problem/s is/are in America today for successful foundry. I am guessing a post-manufacturing MBA margin culture is one. And government pork (from DEI to green to whatever - i.e., 6,000-page trade agreements) is another. But there also is a fascinating gray area in which today’s management teams, let alone the federal government, cannot openly countenance the demanding work requirements that define a TSMC. In which case we demand the fruits of a process that we condemn. Liberalism and its discontents, digital version.
Very informative, thank you so much for this. Do you plan on publishing a similar comparison for European semiconductor efforts?
A very nice piece. Disappointed no substantial English coverage (yet) and also the US build out is so slow. But again that does not surprise me. I passed through LA and Hawaii the last two weeks and the poor quality of American infrastructure and buildings continues to beggar belief, and the efficiency of services … don’t ask my view.