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The far ahead argument is something I read weekly on investing boards Some claim tsmc is decade ahead, other say it is 3 to 5 years, etc, etc. From my underst

The far ahead argument is something I read weekly on investing boards Some claim tsmc is decade ahead, other say it is 3 to 5 years, etc, etc. From my understanding both are in a race that will be decided in next 10-14 months and when it comes to the future, Intel has priority on next gen EUV (HighNA), so there is a chance Various medias report that Intel has 1-2 year advantage due on tech like PowerVia So, it is not that clear how far ahead TSMC is _____ >TSMC isnt stupid Yes, they arent, so arent their customers who want geo diversified supply chain and risk amortization (Earthquake? War? Drought?) Also they will have leverage when negotiating deals with TSMC

sanxiyn 3y ago
I am somewhat skeptical about high-NA EUV. There are reasons why Intel got priority on that: ASML marketing materials themselves imply high-NA EUV is worse than low-NA EUV in terms of cost. https://www.semianalysis.com/p/asml-dilemma-high-na-euv-is-worse https://www.semianalysis.com/p/asml-dilemma-high-na-euv-is-w...
j_walter 3y ago
> Also they will have leverage when negotiating deals with TSMC Except Intel hasn't talked about price at all...they have a completely different cost structure that isn't competitive at all. Think about AMD gross margin vs. Intel's gross margin. AMD has similar...all while giving TSMC 50%+ gross margin also. Now tell me Intel's cost will be similar to TSMC...
- deleted 3y ago
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- Wytwwww 3y ago
  Their foundry business is a tiny fraction of their revenue at this point and I'm not sure their overall gross margin is particularly relevant here (also Intel has lower gross margins than AMD or TSMC these days?)
  - j_walter 3y ago
    If they can't make good gross margin when making their own products that are higher priced (than similar AMD products)...how are they going to do it when they have to support an end customer that expects high gross margins? Intel GM ~46% AMD GM ~46% TSMC GM ~53%

sanxiyn 3y ago

I am somewhat skeptical about high-NA EUV. There are reasons why Intel got priority on that: ASML marketing materials themselves imply high-NA EUV is worse than low-NA EUV in terms of cost. https://www.semianalysis.com/p/asml-dilemma-high-na-euv-is-worse https://www.semianalysis.com/p/asml-dilemma-high-na-euv-is-w...

j_walter 3y ago

> Also they will have leverage when negotiating deals with TSMC Except Intel hasn't talked about price at all...they have a completely different cost structure that isn't competitive at all. Think about AMD gross margin vs. Intel's gross margin. AMD has similar...all while giving TSMC 50%+ gross margin also. Now tell me Intel's cost will be similar to TSMC...

deleted 3y ago
[deleted]
Wytwwww 3y ago
Their foundry business is a tiny fraction of their revenue at this point and I'm not sure their overall gross margin is particularly relevant here (also Intel has lower gross margins than AMD or TSMC these days?)
- j_walter 3y ago
  If they can't make good gross margin when making their own products that are higher priced (than similar AMD products)...how are they going to do it when they have to support an end customer that expects high gross margins? Intel GM ~46% AMD GM ~46% TSMC GM ~53%