Morris Chang of TSMC recently gave his view of the capital investments needed for the company’s next 3nm fab in southern Taiwan. Chang believes the fab will require an investment of 20B$ before it is fully operational. This is more than the total yearly capital investments for the entire semiconductor foundry industry.
The total CapEx of Semiconductor companies, Semiconductor conglomerates and Semiconductor foundries will not pay for many fabs moving forwards. Manufacturing will be a game only played by the largest of companies.
Although semiconductor foundries are controlling more of the total semiconductor manufacturing they are not able to capture the value creation from their customers in the current growth market. While most of their customers have grown both revenue and operating profit the foundry industry has not been able to follow. Read the Bloomberg article here
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