Musk builds a chip factory. Well-known analysts: There will be absolutely no impact on TSMC in the short to medium term.

First submission 10-14 22:00

Update time 10-15 07:00

Even for TSMC, the world's largest chip contract manufacturer, building and commissioning a new fab takes years. (Reuters)

[Financial Channel/Comprehensive Report] Tesla CEO Musk plans to build Terafab, a large-scale semiconductor manufacturing plant in Texas, USA. Yang Yingchao, chairman of Corcoran Capital and senior semiconductor analyst, said that the project will not have an impact on TSMC in the short to medium term, because such projects take 5 to 10 years to realize.

Yang Yingchao told reporters on the sidelines of a forum in Taipei that building a leading chip foundry is very complex. Yang noted that even for TSMC, the world's largest chip contract manufacturer, it takes years to build and commission a new fab.

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Yang pointed out that many multinational companies have tried to enter the semiconductor manufacturing field in the past, but failed due to the industry's high technical barriers and huge capital requirements. He cited the IBM semiconductor business where he worked before as an example, pointing out that the business was eventually sold to GlobalFoundries.

If Musk, who leads companies such as Tesla and SpaceX, succeeds in building a chip manufacturing plant, it could take five to 10 years to become operational, Yang said, adding that the project would have "absolutely no impact" on TSMC in the short or medium term.

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