Governments and Semiconductor Market Power Balance, the Equipment Boom's End

    The Chip Insider®
    April 23, 2021 — Strategy and Tactics: Governments and semiconductor market power balance. When does the equipment boom end? Maxim: Branding. WildPhotons: It feels good to be lost...
    G. Dan Hutcheson G. Dan Hutcheson
    Summaries:
    Governments and semiconductor market power balance: It has been decades since the last time Governments were deeply involved with the semiconductor industry. That era spanned three decades and was over by the 1990s. Then, as now, the rational for the rise came from multiple vectors with national security at the core. Also similar was that the first sparks for what would become the first world trade war over semiconductors came out of Asia. In the 1970s, Japanese visionaries saw...Then came China, which provided the first sparks for a second world war over semiconductors...What is so different about WWSII, is the misdirected pressure on holding down China...misdirected because unlike Japan in the 1970s and 80s...Few argue with the immense success of TSMC. It is the Hope Diamond of the global semiconductor infrastructure...

    When does the equipment boom end? There continues to be a lot of concern that all the capacity additions will lead to a glut. What we typically hear by pessimists places it in 2 to 3 halves out. If not, they want to hear why we believe this won't happen. As I mentioned earlier this year, fabs are getting more expensive. To illustrate the impact, consider that even with last year's $92B spent on equipment, wafer fab capacity declined by...In contrast, in 2000 $56B was spent to create...of additional capacity...

    Maxim: Branding word choice will make or break a product. Words matter. Words imprint in the brain with the images they create. It is a general observation the best brands are built around words descriptive of the products, markets, or the companies they are destined to represent. The examples are numerous: General Motors for cars. Tesla for groundbreaking electric cars. Better yet, Intel for 'Integrated Electronics,' AMD for 'Advanced Micro-Devices,' or Applied Materials...which describes exactly what they do. More recently, there's MediaTek, TSMC for 'Taiwan Semiconductor Manufacturing Corporation,' and GlobalFoundries. Of course, it doesn't always work. But, it's a good start to get a product or company on the way...

    Governments and semiconductor market power balance, the equipment boom's end


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