Microchip Shortage DowntimeMain reason is economic. It is extremely expensive to build and operate a semiconductor foundry or fab, upwards of $1 billion just to get one up and running. If the fab has anything less than full or near full utilization, it will become a money pit for the company that operates it. That's why the pure play model used by TSMC, Globalfoundries, etc. makes sense. These companies have numerous contracts from multiple customers allowing them to keep utilization at their fabs at or near 100%.
Another reason concerns engineering expertise. Getting a fab operational, keeping it running, and upgrading it on an ongoing basis to keep up with advancements in process technology, requires extremely specialized skills that very few organizations possess. Ford certainly does not, and will not be able to hire a critical mass of material scientists, electrical engineers, chemical engineers, etc. to make semiconductor device production a viable business for them.Fri, 05 Feb 2021 05:21:10 +0000
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