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jorvitoday at 7:19 AM6 repliesview on HN

High-end chips should be more of a EU concerted effort rather than every country for itself.

The problem is that unlike Airbus, which (highly inefficiently) can be made in multiple countries, you can't really spread out parts of a fab that way. The most you can do is fab machines + chips + chip packaging. Netherlands already has fab machines and in packaging there isn't a high margin.

That leaves chips, and you can be sure that whoever gets the fabs, the other EU countries will throw a shit fit and demand counter investments to compensate. And on top of that there is also regional animosity. So even if it makes logical sense to pop the fab down in the middle of the blue banana, it won't make political sense because France and all of South and East EU will be angry about "the rich getting richer".


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joe_mambatoday at 7:51 AM

>High-end chips should be more of a EU concerted effort rather than every country for itself.

And how are we gonna do that exactly? EU runs on national interests of those footing the bill, mainly France and Germany as the largest net contributors.

When you're relying on national subsidies to build and run a factory and adjacent infrastructure in a country, you're tied to national interests and demands of those countries footing the bill for all that infrastructure.

So the likes of France and Germany aren't gonna give billions in subsidies from their taxpayers' money to semiconductor companies so that they can incorporate in Netherlands to dodge taxes and then create jobs in low-cost Poland and Romania instead of at home, even though that's already been happening to an extent in other industries over the last 20+ years.

It's the same with arms purchases now. France blocked Ukraine from using its money to buy British made weapons that are already available, since it expects that money to go back into the French economy, not to the economy of a competitor, even if the much needed weapons will arrive much later.

Yeah I know, UK isn't EU anymore, but the point still stands, as EU nations are still economically competitors to each other and they're not gonna spend their tax money to fund competing economies even in the EU block.

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acattontoday at 11:14 AM

Airbus was never born as a European giant. It was a merging of many national champions (Aérospatiale, DASA and CASA) that were each already making full airplanes. They figured out how to spread out the manufacturing later.

Airbus currently has two factories finalizing the airplane assembly: one in Toulouse and one in Hamburg. You could copy this model and just open different fab in different countries to spread production.

Also, another model is one country making wafers, one country making EUV-lithography machines and parts, one country mining and refining silicon, etc.

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rich_sashatoday at 12:21 PM

EU has a solid path of a lot of money to be spent in the next 5-20 years. Chips, AI, advanced weaponry, more advanced weaponry etc. If there was a program where everyone gets a slice, I'm sure it would work - a bit like ESA. It is doing it piecemeal that runs into the very problem you describe.

whstltoday at 9:15 AM

Good point, but gotta remember that people don't buy chips, they buy products. There's plenty of stuff to be produced. From components to PCBs to casing to packaging.

China didn't become the manufacturing giant it is because of a single product, they did because the whole supply chain was moving there while the EU and US were only concerned about higher-margin products and activities.

I'm sure some town in Italy wishes it was still the world's #1 diode manufacturer or something.

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