When countries rush to secure the first 450mm fab

Will there be a tipping point at which chip companies and governments rush to build the first 450mm fab?

Yesterday, Malcolm Penn, CEO of analysts Future Horizons stated: “Where the first 450mm fab is located is going to be such an interesting decision – it will be loaded with politics – every country in the world will want it.”

Future Horizons has been tasked by the EC with looking at whether it’s a good idea to encourage the European semiconductor manufacturing equipment industry by undertaking to set up an EU-backed 450mm fab line in Europe.

Asked to speculate on who would build it, Penn replied, “Well TSMC has always built all its plants in Taiwan, but 450mm could be the excuse it needs to break with that.”

Intel, with its record of following the government incentives, could be another.

Alternatively a group of fables companies could ask TSMC to build a fab which they would jointly fund and take all the production from.

That would give them almost unassailable edge on the competition.

For instance. Qualcomm as saying that if 450mm is the only way to keep their chips on a 29% cost reduction curve, then 450mm is what they want.

Qualcomm, sitting on a $22 billion cash pile, could afford to have TSMC build them a 450mm fab all for themselves – giving Qualcomm an unassailable lead on the wireless industry.

Asked about the formerly reluctant equipment industry response to 450mm, Penn replied:

“The mood at Semicon West was reasonably positive on 450mm. Even Tokyo Electron, which used to be strongly against it, is reluctantly conceding it will happen.”