Fab business is not a game of decentralization. It is very expensive and the model of GF to be building mini-fabs may not work out. I think if you remove the Petro dollar, GF is losing money. That is not a good business.
This looks like a perfect opportunity for GF as their strategy is to build fabs around the world and demonstrate that they can pull this off even if rumors are saying they are struggling with a German fab.
Any opinions on that?
If I had a definite answer to that I would have put it in article, so this is just my opinion.
TSMC/Chang has a strong tradition of keeping all its manufacturing based in a few mega centres in Taiwan. As an aggregator of manufacturing it is all about economies of scale. There are exceptions in Cama, Wash., Singapore and Shanghai.
But TSMC declined to put a fab in "ailing" Europe and it looks like it will decline to do so in Japan.
It looks like Renesas was trying to make the fab transfer the price of going with exclusively with TSMC as its foundry partner. Chang appears to be saying that Renesas needs TSMC's support more than TSMC needs Renesas's business.
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