Why only Taiwan makes chips

Taiwan's Dominance in Chip Manufacturing

• The Taiwanese government heavily invested in chip manufacturing R&D, positioning itself to become a key player in the high-tech economy.
• Taiwan's consistent investment over decades positioned it in the lead, unlike many western companies that outsourced to reduce costs.
• TSMC, a Taiwanese company, emerged as a key player, focusing on manufacturing chips for other companies instead of its own products.
• TSMC's success stemmed from early focus on third-party fab instead of in-house fabs like Intel.
• TSMC's focused and steady improvements led to overtaking Intel in advanced fabrication, emphasizing manufacturing chips for others.

TSMC's Advantages and Market Dominance

• TSMC's business model of only manufacturing chips without designing them made it an ideal option for companies needing chip fabrication.
• Companies like Samsung also excel in chip making but make devices as well, creating competition for those looking for chip fabrication services.
• TSMC's success and market dominance are attributed to heavy R&D investments and a focus on chip manufacturing.
• Pros: Strong business model, steady and predictable improvements, market leadership.
• Cons: Dependency on external design customers, potential competition from other companies.

Challenges and Competition in the Chip Industry

• Setting up chip fabrication facilities requires a significant investment, and catching up with Taiwan's lead poses a challenge.
• The US is investing in chip manufacturing capacity to reduce Taiwan's monopoly, but building competitive facilities takes time.
• Companies like Intel and AMD are strong contenders in chip manufacturing, with Intel aiming to catch up with TSMC.
• Pros: Potential for growth, increased demand for chips, diversification of design customers.
• Cons: Expensive facilities, strong competition, dependency on external partnerships.

Reddit Comments Insights

• Some Reddit users express skepticism about Intel's potential due to lack of leadership and past failures in product development.
• Others debate the likelihood of a future Intel resurgence and emphasize the importance of technical mastery and vision.
• The discourse also touches on the influence of global factors like tariffs and the role of executive leadership in shaping a company's trajectory.
• Shareholders' diverse perspectives on Intel's future performance highlight the complexity of evaluating investment opportunities in the chip industry.

By analyzing the Reddit comments, it's evident that Taiwan's success in chip manufacturing is attributed to strategic investments, focused business models, and technological superiority. While companies like TSMC lead in third-party chip fabrication, Intel faces challenges in regaining a strong market position. Users share varying opinions on Intel's prospects, reflecting the nuanced landscape of the semiconductor industry and highlighting the multifaceted considerations involved in investment decisions.