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ASML CEO says world needs the legacy chips China is producing, Handelsblatt reports
(www.reuters.com)
this post was submitted on 08 Jul 2024
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For every bleeding edge GPU and CPU, there are thousands of simpler ICs still in use. Microcontrollers, logic gates, opamps, etc. There's no reason to produce those at the smallest feature size possible.
I agree, but why were the original product lines closed, when there is still a need for them?
thin profit margins
So building new production facilities in another location, with all it takes including logistics, is supposed to be cheaper than continuing an existing production?
It may be so, but something is wrong with this.
I was only answering your question. It was shortsighted to close down those production lines. The obvious answer is to rebuild the capacity to make those chips, which will of course be expensive and may not even pay for itself.
Yes, I'm not contradicting you, it's just weird to close production lines that have orders. But maybe the more expensive fabs try to force production to newer processes, because that makes them more money?