GlobalFoundries claims German chip subsidies will 'distort competition'
We asked TSMC and GlobalFoundries for comment on the matter, but neither was immediately available. Gartner VP Analyst Gaurav Gupta said it was important to realize these funds are for expansion or new builds, not subsidizing existing facilities.
He added that all this spend was driven by anxiety over the reliance on manufacturing in Asia, especially with all the tensions between the US and China and the supply chain issues that followed the pandemic. But Gupta warned this could lead to higher costs and challenges because of a shortage of skills and labor."Also, the timelines aren't definite and could get pushed out if market demand isn't there or a company isn't able to bring up a technology at high yield. So there are risks involved," he said.
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