Patrick's first post
Cyril-Patrick Fernandez Owner, Chief Technical Officer, Managing Director at Advanced Fab Technology, USA,
Semiconductor Manufacturing is critical to countries in this digital age.
Semiconductor chip manufacturing is a foundational building blocks of our modern lives. It is also at the forefront of National Security, Economic Prosperity and International Politics, giving rise to trade disputes, military conflict and other disruptions to countries. It enables nearly every modern industrial, commercial, and military systems, including smartphones, aircraft, weapons systems, the internet, and the electric grid. GDP, JOBS and wages
THE PROBEM: example: Although the US invented the silicon chip in 1959, in the last 50 years, the US share of global semiconductor manufacturing fell from 100% to 8%. Since Semiconductor Manufacturing moved away from the U.S, it affects the US GDP by > $1 Trillion. U.S. companies capture over 80% of world market in semiconductors but manufacture only 8% of the chips. Fabless: Design companies such as QUALCOMM, Broadcom, and AMD capture value by their designs. They outsource their manufacturing to lower-cost, higher-performance companies, primarily in Taiwan and Korea. In spite of the $52 Billion in US Government funds and $480 Billion in private funds, the US will marginally improve, or the situation will worsen as US companies will shut down fabs because of its inability to compete, thus affecting the US in a big way both in defense and in commerce. Taiwan, a tiny company, improved its economy by nearly $1Trillion in the 1970s, spearheaded by semiconductors. The value chain of semiconductors to electronics is 16X; hence, a $100B semiconductor industry will drive a $1.6 Trillion economy,
Today, Asia manufactures 77% of chips globally.
Today, Asia manufactures 77% of chips globally.
