alt Hacker NewsSilicon Valley is arguing that TSMC isn't investing enough. They should be investing hundreds of billions to build fabs, like how big tech is investing in the AI buildout.
$45 billion for new fabs is peanuts compared to Amazon's $200b and Google's $180b investment in 2026.
Can't really blame TSMC though. It takes years for fabs to go from plan to first wafer. By the time new fabs go online, demand might not be there. Who knows?
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Ah, that "lays off 50,000 workers because of overhiring" oracle-of-farsight big tech?
Little easier than "laying off" a billion-dollar fab, isn't it?
Actual spending already out the door or pledges? Big difference vs. money spent and money planned.
"Silicon Valley" doesn't get to make the decision unless they are willing to send some of those hundreds of billions to TSMC up front. (TSMC isn't going to want future promises of business either since those are worth very little.)
> Amazon's $200b and Google's $180b investment
Last time I checked you cant build Chip Fabs with cloud credits.
According to Elon during his recent Dwarkesh podcast appearance[1], TSMC is limited by resource constraints (fab components, contractors, etc). His claim is that TSMC is building as fast as they can and they are unable to meet industry demand.
Seems legit to me. Nonetheless, I think it's a solvable problem.
1. https://www.youtube.com/watch?v=BYXbuik3dgA