According to Morris Chang, founding chairman of TSMC, Apple CEO Tim Cook expressed skepticism about Intel's foundry ambitions, reportedly stating that Intel "didn't know how to be a foundry." This comment, made during a meeting where Chang was trying to convince Cook to let Intel manufacture Apple chips, highlights the perceived difference in expertise and experience between established foundry giant TSMC and Intel's relatively nascent efforts in the contract chip manufacturing business. Chang ultimately declined Intel's offer, citing their high prices and lack of a true commitment to being a foundry partner.
Taiwan Semiconductor Manufacturing Co (TSMC) has started producing 4-nanometer chips at its Arizona facility. US Commerce Secretary Gina Raimondo announced the milestone, stating the chips will be ready for customers in 2025. This marks a significant step for US chip production, bringing advanced semiconductor manufacturing capabilities to American soil. While the Arizona plant initially focused on 5-nanometer chips, this shift to 4-nanometer production signifies an upgrade to a more advanced and efficient process.
Hacker News commenters discuss the geopolitical implications of TSMC's Arizona fab, expressing skepticism about its competitiveness with Taiwanese facilities. Some doubt the US can replicate the supporting infrastructure and skilled workforce that TSMC enjoys in Taiwan, potentially leading to higher costs and lower yields. Others highlight the strategic importance of domestic chip production for the US, even if it's less efficient, to reduce reliance on Taiwan amidst rising tensions with China. Several commenters also question the long-term viability of the project given the rapid pace of semiconductor technology advancement, speculating that the Arizona fab may be obsolete by the time it reaches full production. Finally, some express concern about the environmental impact of chip manufacturing, particularly water usage in Arizona's arid climate.
Summary of Comments ( 67 )
https://news.ycombinator.com/item?id=42868531
Hacker News commenters generally agree with the assessment that Intel struggles with the foundry business model. Several point out the inherent conflict of interest in competing with your own customers, a challenge Intel faces. Some highlight Intel's history of prioritizing its own products over foundry customers, leading to delays and capacity issues for those clients. Others suggest that Intel's internal culture and organizational structure aren't conducive to the customer-centric approach required for a successful foundry. A few express skepticism about the veracity of the quote attributed to Tim Cook, while others suggest it's simply a restatement of widely understood industry realities. Some also discuss the broader geopolitical implications of TSMC's dominance and the US government's efforts to bolster domestic chip manufacturing.
The Hacker News comments section for the article "Intel doesn't know how to be a foundry," Tim Cook reportedly told TSMC's CEO" contains a moderate amount of discussion, primarily focusing on the complexities and challenges of running a successful semiconductor foundry.
Several commenters highlight the intricate nature of the foundry business, emphasizing that it's not simply about manufacturing prowess. One commenter points out that building chips for other companies requires a deep understanding of their specific needs and design constraints, suggesting Intel might lack the necessary experience and flexibility in catering to diverse customer requirements. This sentiment is echoed by another commenter who mentions the importance of close collaboration and communication with clients, a skill they believe Intel hasn't honed as much as TSMC.
The discussion also touches upon the cultural differences between Intel and TSMC. One commenter speculates that Intel's historical focus on internal product development may have fostered a culture less amenable to the demands of external clients. Another commenter suggests that Intel's internal priorities and product roadmaps could potentially conflict with the needs of its foundry customers, creating tension and potentially delaying projects.
Some comments delve into the technical aspects of foundry operations, discussing the challenges of process technology migration and the importance of yield optimization. One commenter argues that Intel's struggles with its own process nodes might hinder its ability to offer competitive foundry services.
A few commenters express skepticism about the veracity of the reported conversation between Tim Cook and TSMC's CEO, suggesting it could be a strategic move by TSMC to undermine Intel's foundry ambitions.
Finally, some comments offer a more nuanced perspective, acknowledging Intel's potential to eventually succeed in the foundry business, but emphasizing the significant hurdles it needs to overcome. One commenter points out that Intel has vast resources and expertise, and with the right investments and strategic adjustments, it could become a formidable player in the foundry market.