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Big lose! Morris is crying! TSMC diligent Culture Clash at the US plant!
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Big lose! Morris is crying! TSMC diligent Culture Clash at the US plant!

TSMC Losing Everything?

Overview: This video discusses the reasons why TSMC, the world's most advanced manufacturer of chip manufacturing technology, is losing its leading edge. It examines how TSMC has lost its equipment and R&D advantages, failed to seize new opportunities, and is facing a culture clash in its Arizona Fab.

TSMC Pursuing Technological Leadership

  • TSMC began to pursue orders and subsidies, which caused it to lose its leading advantages in equipment, yield rate, and R&D.
  • Samsung took the lead in mass producing three nanometers chips before TSMC, and plans to mass produce three nanometers chips with GAA process this year.
  • TSMC plans to mass produce two nanometers chips with GAA process in 2024, while Samsung and Intel plan to mass produce two nanometers chips around 2025.

TSMC Losing Equipment Advantage

  • Previously, the EUV lithography machine developed by ASML was given priority to TSMC, but in terms of the new generation of high NA EUV lithography machines, TSMC said it will be available in 2024 and ASML is expected to deliver to manufacturers later this year.

TSMC Losing R&D Advantage

  • TSMC announced to build a factory in the United States investing more than 43.5 billion US dollars to build a five nanometers per three nanometers chip production line.
  • The U.S has said that any chip company receiving more than 150 million dollars in direct funding will be required to share with the U.S a portion of any cash flow or return that exceeds the applicant's expected agreed upon threshold.

TSMC Not Seizing New Opportunities

  • SMIC is the first company in the world to expand the production capacity of mature technology chips with a continuous investment of nearly 150 billion yuan.
  • TSMC did not seize the opportunity of new energy vehicles, which brought huge opportunities to mature technology chips.

TSMC Culture Clash at Arizona Fab

  • The engineers dispatched by TSMC are accustomed to the corporate culture of long working hours and responsibility system in Taiwan, while American Factory workers scout out the door without handing them over when it's time to leave and even refuse to be assigned.
  • Such a culture clash could affect TSMC's technological leadership.

TSMC's Expansion to the US

Overview: This section discusses TSMC's expansion to the US and the challenges they face in managing employees unaccustomed to their work culture.

TSMC's Expansion

  • The US CHIP Act provides subsidies to cover the four times higher production costs of US factories.
  • TSMC has decided to expand its original promised investment from 12 billion to 40 billion dollars, which may drive more manufacturers to invest.

Managing Employees

  • Taiwanese employees were sent to work at US plants on six chartered flights.
  • Employees received double salary treatment, recreational vehicles, and dormitories arranged by the company.
  • Dissatisfaction with employees or their spouses has been reported on the internet.
  • TSMC faces challenges managing employees at its new Fab in Arizona who are unaccustomed to the long work hours and management culture.
  • Fab operators need to keep expensive and highly sensitive Capital Equipment running 24/7.
  • Production Engineers must monitor and tweak their equipment constantly.
  • Employees remain on call after ordinary working hours in the event of an emergency.
  • TSMC should expand its Workforce so employees can work reasonable hours each day and still enjoy good benefits.
  • Long work hours have added to TSMC's reputation as a company where Fab workers sacrifice their health in return for attractive compensation packages.

Culture Change

  • The work culture in Taiwan is different than in the US.
  • TSMC will have to change to an eight-hour workday five days a week.
  • Reality for people from Taiwan is that they are doing even more than 12-hour days.
  • Changing the culture or work environment from what it's like in Taiwan will be very difficult.
  • More than half of the people in Arizona may come from Taiwan.
  • The US government has worked closely with Foundry leaders TSMC and Samsung to help revive US semiconductor manufacturing.
  • Americans workers at TSMC's Arizona Fab may chafe becoming the humble student of their mentors in Taiwan.
Video description

"As the most advanced manufacturer of chip manufacturing technology, TSMC is losing everything because of its own wrong choice." Well, this is the media's evaluation of TSMC. Due to TSMC's world-leading chip manufacturing technology, high yield rate, and large production capacity, it has never been short of chip orders. But after the chip rules were revised, everything changed. TSMC began to pursue orders and subsidies. Because of this, TSMC lost its leading advantages, equipment advantages, and R&D advantages, and it failed to seize new opportunities. To make matters worse, TSMC's diligent Culture Clash at Arizona Fab. Why? I mean, how did TSMC get into such a plight? OK, in today's video, let's talk about this issue.