On Monday , theU.S. governmentannounced that it will contribute $1.5 billion to GlobalFoundries $GFS under the Chip Act, boosting domestic manufacturing. Intel $INTC also finds itself in the game with possible subsidies in excess of $10 billion! 💰
I'm quite curious how they'll manage to pull off that TSM lead. I've been reading some analysis on the new machines from ASML and it looks like they're more expensive to produce than the ones TSM is currently using and they can't manage to produce everything they have planned for 2030. Even if Intel delivers what they've been promising for a few years now, it's quite possible they'll make less profit on it than TSM. Factoring in the cost of human labor in Taiwan, they're not going to have an easy time getting to their original margins.
I've sold Intel and Micron and only hold TSM with ASML in semis anymore.
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I'm quite curious how they'll manage to pull off that TSM lead. I've been reading some analysis on the new machines from ASML and it looks like they're more expensive to produce than the ones TSM is currently using and they can't manage to produce everything they have planned for 2030. Even if Intel delivers what they've been promising for a few years now, it's quite possible they'll make less profit on it than TSM. Factoring in the cost of human labor in Taiwan, they're not going to have an easy time getting to their original margins.
I've sold Intel and Micron and only hold TSM with ASML in semis anymore.