TSMC is spending $9B or 50% of revenue on CapEx in 2013.
They cannot afford this level of CapEx for another 3 years. They will fall behind even more soon.
The problem is TSM sells into the $30 chip market, so they cannot charge more for their chips either, or else their customers will suffer huge losses.
Shows you how serious they are about leading the low power fabrication space and how much serious money is being pumped in due to revenues from mobile chip fabrication. Samsung and GloFo are in a similar state. This is very different from what it was in earlier generations of process development when Intel was far ahead in terms of capex compared to these foundries. The mobile market has changed things.
It doesn't show how serious they are about leading. It shows how serious they are about trying to avoid being put out of business. They're never going to lead. They can't afford this level of expenditures every year. Intel spends more than this every single year.
This is very different from what it was in earlier generations of process development when Intel was far ahead in terms of capex compared to these foundries.
It sure is ... the end of chap ARM SoC's ...
Just look at wafer price projections made NVDA.for 20nm and below
Samsung is at last 50% captive
and Glofo is highly dependent on x86(AMD).
TI is OUT and Freescale / ST are moving out of mobile
just put the $9 billion of TSMC capex into perspective of 28nm revenue -
TSMC is shooting for 30 %....