[Hardware] Chip independence is 20 years away, according to NVIDIA

[FNX Magokiler]

We have been talking for years about the world's dependence on Asia in terms of chip manufacturing. Large companies are striving to open chip factories in Europe and the Americas precisely seeking to have a certain level of independence from the Asian market, but now the CEO of NVIDIA has come to the fore to dash all hope, stating that at least 20 are missing. years to have independence in terms of chip manufacturing.

Jensen Huang, CEO of NVIDIA, believes that the United States could take up to two decades to be self-sufficient in chip manufacturing, and it is curious that this statement comes precisely from the top leader of a company that historically has always depended on chip manufacturing. in Taiwan. However, it is also true that the chip manufacturing industry has expanded in recent years at a pace never seen before, and it is clear that large manufacturers are putting a lot of emphasis on seeking this independence that allows them to be self-sufficient.

Chip independence is more important than it seems
Asia has the largest manufacturing infrastructure in the world (and not just for chips, that too), and this has obviously led to gigantic agreements between large companies for this. But of course, this also means that we are depending on a market that is not ours, in which they are the ones who set both the rules and the pace, and who have the power to minimize, stop and even cancel production whenever they want.

 

 

Obviously, this is not liked by those who depend on it, and not only because they are "losing" money by having to pay a third party to manufacture the chips that you design, but because the production times and volume are set by them.

Imagine the situation with this example: you are NVIDIA, you have created a new chip and you want to manufacture 100 units. You send your Asian partner the plans to manufacture this new chip and tell him that you want 100 units, but your partner tells you that there are other clients ahead of you, and that his manufacturing capacity will only allow him to give you 50 chips now and another 50 within 6 months. You do realize where the shots are going, right? If you had your own local chip factory, you would put them into production immediately and in the quantity you need, and since there were no intermediaries or transportation it would be much cheaper.

Well, of course, "cheaper" is relative... yes, think that if you manufactured your own chips they would surely cost you a third compared to ordering them from a third party, but you also have to take into account that having a chip factory implies an initial investment of billions that will take years (if not decades) to pay off.

 

https://hardzone.es/noticias/procesadores/independencia-chips-nvidia/