Stratechery Chips and Geopolitics
May 19, 2020
Dive into the evolving world of semiconductors and discover TSMC's pivotal role in shaping the industry. Explore how geopolitical tensions, particularly between the U.S. and China, impact manufacturing strategies. The discussion critiques Intel's approach and highlights the urgent need for the U.S. to adapt to maintain its competitive edge. Strategic decisions in chip production may not just influence technology, but also global power dynamics.
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Integration vs. Modularity
- Integrated architectures offer better performance initially, but modular ones win in the long run.
- Modularity allows for faster innovation and customization, crucial for sustained market leadership.
TSMC's Success Story
- TSMC's founding exemplifies Christensen's theory.
- By focusing solely on manufacturing, TSMC enabled countless fabless chip designers to thrive.
Geopolitical Implications of Chips
- TSMC's dominance creates geopolitical concerns, especially given Taiwan's proximity to China.
- Advanced chip manufacturing is now a strategic asset in the US-China rivalry.
