Baker reveals SpaceX and Tesla are building world's largest fab in America with Intel partnership access.
“It's a SpaceX, I believe Tesla's involved as well, joint venture to build the world's largest fab here in America. I think they're going to be successful.”
Baker explains TSMC caught Intel because semiconductor equipment suppliers wanted to avoid Intel's monopsony power.
“They wanted them to catch up. They don't like having a monopsony. The a teams were in Taiwan working. Intel made some mistakes and presto.”
Baker says there hasn't been a true semiconductor capacity cycle since the late nineties due to TSMC smoothing supply.
“We haven't seen a true capacity cycle in semis arguably since the late nineties. And that's because Taiwan Semi has been so good at aggregating and smoothing supply.”
Baker says Taiwan Semi will spend more on CapEx in 2021-2022 than in the preceding five years.
“Taiwan Semi, their 2022 CapEx is going to be many multiples of 2019. 2021 and 2022, they'll spend more than they did in the preceding five years.”
Baker notes Taiwan Semi will spend more on CapEx in two years than in the preceding five years.
“Taiwan Semi, their 2022 CapEx is going to be many multiples of 2019. 2021 and 2022, they'll spend more than they did in the preceding five years. So there is a massive supply response coming.”
Baker says Taiwan Semi reached the node before Intel in 2018, creating a competitive shift.
“Taiwan Semi got to the node before Intel, which meant that Taiwan Semi, who supplies most semiconductor companies that you can think of Yeah.”